Acquisition is a result of evolution and normalization of the media industry. Some of the main line agencies, which are known for their overall traditional skill sets, have been in the running for about 120 years. With the steady growth of social media over the last decade, digital media marketing has taken the front wheel. Acquisition of the two agencies will not only help the digital agencies to grow but would help the growth of the industry as a whole.
In this interview, we talk to Harshil Karia, Co-founder and Online Strategist at Foxymoron about Acquisition of Digital agencies.
Harshil was of the opinion, that mainline agencies should build cash reserves and that if they are ready to pay the right price, a merger sounds like a good idea. He says, if you plan on building a company for 50 years, then you should merge with the mainline agencies. However, he believes that one will be successful either way. It has been seen that the leaders who want to continue their leadership do so by acquiring those who are already leaders.
He says, Foxymoron has a creative reputation, they have clean and strong revenues, they are a team of 100 people and are expanding. He says that they have a fundamentally strong business model and he would like to try and scale this. They have been approached by investors mostly representing large agency networks, who they have been happy to hear from, but haven’t decided on anything yet, since they are too young in their life cycle.