M&A comes for the creator economy
The Future. The past few years have been an era of outsized growth for Big Tech, the sudden rise of various creator-focused startups, and the mainstream introduction of everything from the blockchain to AI. Now Wall Street, private equity firms, and VCs want a return on investment. Those forces are expected to lead to a year of mass consolidation, strategic mergers, and off-ramp acquisitions… which may make it easier to understand who the real players are.
The creator landscape may radically shift in 2023. According to Insider, here are the trends to look out for:
- It’ll be a buyer’s market. A revenue-focused market will make it harder for startups to raise more money, making it more attractive to just sell before the costs rise.
- Big Tech could take a bite. Meta, TikTok, and even Shopify may look at acquiring creator-focused businesses as the evolution of their business after launching various monetization features this year… but may run into renewed government regulation.
- People-focused companies want tech and data. Influencer marketing and talent-management firms may view tech-focused companies as an integral tool to get a leg up in a crowded field.
- Niche startups will consolidate. The pandemic led to the sudden rise of several similar startups (so many link-in-bio companies), which may have no choice but to merge or sell if they want to exist at all.
- Creators merge or cash out. Creators have finally reached an asset-class status, with startups like Jellysmack and Spotter paying for catalog rights. Some creators may even merge their followings to become more attractive targets.
Sounds like we’ll have a lot to cover…