EMG & Gravity Media on merger’s next steps

Broadcast Tech has spoken to CEO of EMG Shaun Gregory and Gravity Media CEO and founder John Newton about the two companies’ merger.

Announced on 11 January, the merger creates one of the largest broadcast technology and production companies in the world. It will have over 100 OB trucks and flypacks; 40 studios and production facilities across Europe, the Middle East, US, and Australia; 30 offices in 12 countries; and more than 2000 employees. Gregory will become global CEO, with Newton - who was also the majority shareholder in Gravity Media, becoming executive chairman.

The pair reported that all existing shareholers have bought into the merged business and will continue to be invested.

Newton revealed that the move had been in the works for five years, and was very close to happening just before the pandemic hit in 2020. The effects of the pandemic forced both companies to focus internally, before discussions were picked back up again last year and a deal was completed by Christmas.

“Geographic alignment” and “complimentary services” were the main reasons behind the decision, Newton said, adding that the pair have partnered a lot on projects in the past, for example on FA Cup coverage, which meant teams were used to working together.

Gregory added that the, “sector needs investment,” after, “a lot of challenges to the industry,” in recent years. He hopes that the merged business will, ”give the market stability and offer our customers assurances and global scale.” 

The merger’s announcement revealed that there will be investment in new and current services, and Newton said that while this will include investment in all areas, “the industry is changing, and I can see that we’re becoming less of an OB world and more of a connected production world.”

He added, “It makes sense to have people based in production centres,” and that the aim will be to connect their various production centres around the globe - such as the one opened in White City, London, in 2022. “There will always be a place for venue-based outside broadcast trucks. What changes is what’s in those trucks - it could be less people with more in centres.”

Gregory noted that that the merged entity will be, “in good financial health, not leveraged,” and so able to make these investments.

The pair wouldn’t confirm any details on potential job losses resulting on the merger, but did point to EMG’s and Gravity’s different geographical bases and that even where that does cross over, such as in the UK, the pair have different focuses. Using the UK as an example, they pointed to how Gravity’s business centred around production centres and facilities while EMG focused on outside broadcast.

The company will also avoid having one main head office, with the hope that, “every office will think it’s the head office,” according to Gregory. Currently, Newton is based in Sydney, Australia, while Gregory is in the UK.

While playing down the chance of major job losses, Gregory did say, “We have regular resizing of businesses in different markets, and there are always ongoing changes.” He added that any staffing changes will, “depend on the market,” more than the merger. Newton added that there is a, “downward pressure in the market generally,” now, but believes growth will return in this year or the next.

Employees have already been informed of the merger, and those at risk will be contacted, “imminently.”

As for the new senior team, the pair are, “looking to hire in the next few weeks,” revealed Gregory. They will start by looking at existing talent, and hope to have the team in place, “as quick as we can.”

Overall, Gregory said that integration between EMG and Gravity Media will take, “quite some time,” with outside consultants already brought in to help and different speeds for different parts of the businesses. Production centres such as the earlier mentioned White City facility are likely to be some of the more slowly integrated services.