Yahoo Finance’s Editor-in-Chief Andy Serwer joined Yahoo Finance Live to break down how tech is taking over the news media.
SEANA SMITH: Tech is coming to dominate the media industry by a number of measures. Here to talk more about that is Yahoo Finance editor-in-chief Andy Serwer. Andy, great to have you on the show. You wrote about this over the weekend. I guess, just big picture, how do you see tech taking over media? And then, talk to us just about the potential implications of this.
ANDY SERWER: Yes, Seana. Well, first of all, tech is taking over media in sort of three broad ways. I mean, the first one, of course, is the social media companies-- Facebook, YouTube, and Twitter. And by any measure, they are the dominant players in media right now, just in terms of revenue and audience, profits, market capitalization.
So even if you leave those aside, though, there's two other categories or ways that tech is getting in the media business. Number one, leaders in the tech industry are buying media properties. Of course, Jeff Bezos and the "Washington Post." Then you have Marc Benioff buying "Time Magazine," Laurene Powell Jobs buying "The Atlantic." So that's another category, and that's significant. And we'll probably see more of that. I mean, after all, these are the nation's wealthiest people. And so when these media properties come up for sale, they potentially would be buyers.
The third category are companies that are founded by Silicon Valley itself. And you can go back to our own company-- Yahoo, of course-- and then also newer companies like Medium, the Intercept. And then companies like BuzzFeed and Axios and HuffPost, they had investments from Silicon Valley. And finally a new crop of companies, everything from TikTok, to Substack, to Clubhouse, are all very much the products, to a degree, one degree or another, of Silicon Valley.
And that means that, say, the venture capitalists in Silicon Valley, someone like Marc Andreessen, for instance, who's keenly interested in media, holds more and more sway over media. And there are implications to that that we can get into.
SEANA SMITH: Well, yeah, and Andy, real quick, we only have about 30 seconds, but can you just give us a quick glimpse just on what's one potential implication of that?
ANDY SERWER: Well, you know, and Andreessen Horowitz has its own media operation. That's not really going to be journalism. It's branded content. This will be sort of news about the tech industry from the lens of the tech industry. But I think it would just also sort of shift the power center, say, from New York to Silicon Valley in a way that we're just beginning to discover and I think we're going to find out more about over the coming years and decades, Seana.
SEANA SMITH: All right, Andy Serwer, thanks so much. And of course, you could read Andy Serwer's column on YahooFinance.com.