Entrepreneur Dominic Carosa has used acquisitions very effectively to expand his company, Destra – an ASX-listed $70 million video, film and music company. In fact he describes acquisitions as the DNA of his company.
No surprise then that he has just done another deal, buying 3D and Oyster Magazine for $1.75 million cash and $500,000 equity. Additional payments may be made on the basis of performance targets. The founders, staff and management of the publications will stay in place.
“Our strategy is to acquire content and build communities and 3D and Oyster fit into that strategy,” Carosa says. Oyster is in print and the internet. His plan is to take it across mobiles and TV. “I just had a call from a 3G player this morning wanting to talk about how to get that content on the phone.”
Content that would work well on mobiles include interviews with celebrities and fashion shots, he says. “People are watching stuff on mobiles all the time. But it is a short attention span so you have to give them quick things like news, stock quotes.”
Casosa has done about 12 acquisitions in the last 24 months, including Magna Pacific in August, and says he will continue to look for acquisitions in the film, video and music industry.
He recently told SmartCompany his strategy is threefold: The first part is to acquire content, he says. “Both music content and video content, and some of the content that we have is artists such as Dannii Minogue, Roger Sanchez and quite a lot. And sports – we have the rights to the AFL, NRL, World Cup Soccer, V8 Super Cars as well as a huge range of film.
“The second part of the strategy is to build communities around certain demographics, around certain genres of content. We use the content to help drive the audiences.
“The third part of the strategy is to monetise not only through the sale of content but also through the sale of advertising around the content.”
See story: Content King