Transnational Media and Telecommunications

The globalization of markets involves the full integration of transnational business, nation states and technologies operating at high speed. Globalization is being driven by a broad and powerful set of forces including worldwide deregulation and privatization trends as well as advancements in new technology; most notably, the Internet and the power of intelligent networking.

The transnational media corporation (TNMC) is a nationally based company with overseas operations in two or more countries. Their primary business is information and media entertainment. One distinctive feature of the TNMC is that strategic decision-making and the allocation of resources are predicated upon economic goals and efficiencies with little regard to national boundaries. The TNMC has become a salient feature of today’s global economic landscape. Such companies include the Walt Disney Company, Google, Apple, Facebook, Sony to name only a few.

Foreign Direct Investment Strategies

Foreign Direct Investment (FDI) refers to the ownership of a company in a foreign country. This includes the control of assets. As part of its commitment, the investing company will transfer some of its managerial, financial and technical expertise to the foreign owned company. The decision to engage in FDI is based upon the profitability of the market, growth potential, regulatory climate and existing competitive situation.

Mergers and Acquisitions

Between 2006–2020, the business of transnational media has witnessed a new round of international mergers and acquisitions that has brought about a major realignment of business players. Concerns for antitrust violations seem to be overshadowed by a general acceptance that such changes are inevitable in a global economy. The media and telecommunication industries, in particular, have taken full advantage of deregulatory and globalization trends to make ever-larger combinations. Two notable examples include Walt Disney’s 71.3 billion acquisition of 21st Century Fox in 2019 and AT&T’s $85.4 billion acquisition of Time Warner in 2018. The goal, simply put, is to possess the size and resources necessary in order to compete on a global playing field

Transnational Media in the Digital Age

The term transnational media has come to mean something very different in the digital age given the rapid emergence of the Internet and the power of intelligent networking. The study of transnational media management has changed in light of three significant business and technology shifts. From Electronic Commerce to Over-the-Top video streaming services, the Internet provides a level of immediate access to global information, business and entertainment that is unparalleled in the history of media and communication.