In recent years, media investment has become an increasingly important part of many investment portfolios. Major investment firms have ramped up their stakes in media companies and assets. Here we provide an overview of some of the top firms making big bets in the media investment space, examining their major deals, investment strategies, and future outlooks. With streaming wars intensifying and digital media consumption exploding, media investments offer significant growth potential but also risks. Understanding the key players and their approaches is crucial for investors exploring opportunities in this arena.
SoftBank – Aggressive tech and media investor
SoftBank has emerged as one of the most aggressive and active tech and media investors in recent years under the leadership of founder Masayoshi Son. The Japan-based conglomerate has assets over $200 billion and has made huge media bets including a $32 billion acquisition of ARM in 2016, a $9.5 billion bailout of WeWork in 2019, and a $40 billion investment in T-Mobile in 2020. SoftBank also has stakes in top media firms like Snap, ByteDance, Universal Music and more. Its Vision Fund for tech investments is one of the largest in the world at $100 billion. While some bets like WeWork have soured, SoftBank takes a long-term view and continues to bankroll promising media and tech firms globally.
Blackstone – Media infrastructure and data centers
Private equity giant Blackstone has been actively acquiring media infrastructure and data center assets. In 2021, it bought data center operator QTS Realty Trust for $10 billion. It also acquired a majority stake in Crown Castle’s towers business for $20 billion. Earlier, Blackstone invested over $14 billion in acquiring real estate and data center assets from Singapore’s Global Switch. With the explosion of streaming and cloud services, data centers and fiber networks are crucial infrastructure for media and tech firms, and Blackstone is making big bets on owning these vital assets.
KKR – Betting on new media platforms
KKR is focused on investing in emerging digital platforms and networks. It acquired a minority stake in music powerhouse BMG Rights Management in 2021. It also holds shares in ByteDance, owner of TikTok, and owns outright Barstool Sports, a popular digital media outlet. KKR sees strong potential in new content production models and direct-to-consumer distribution enabled by platforms like YouTube, TikTok, Instagram and more. It will likely make further investments in digital native media brands in the coming years.
Bain Capital – Traditional media turnarounds
Bain Capital, co-founded by former presidential candidate Mitt Romney, has focused on acquiring struggling traditional media assets and turning them around. In 2020, it partnered with other investors to acquire a majority stake in Cirque du Soleil after the pandemic battered the company. It also led a group that acquired a majority stake in Virgin Australia when the airline hit financial troubles. Bain believes many traditional media firms are undervalued and sees opportunities to improve operations, cut costs and boost profitability at icons like Cirque du Soleil.
Major investment firms like SoftBank, Blackstone, KKR and Bain Capital are making big bets across the media investment landscape. As consumption shifts to streaming and digital platforms, investors are positioning themselves to capitalize through aggressive acquisitions, steady infrastructure buys, and turnaround deals. With careful strategy and execution, top media investments can pay off handsomely despite significant risks.