Media Sector M&A Insights 2009

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Analysis & opinions on European M&A activity

As before in our Media M&A Insights, PricewaterhouseCoopers' specialists analyse the trends driving M&A activity in the European media sector, review predictions from previous editions and set out their thoughts on developments in the near future.
The seventh edition considers how the crisis is currently affecting M&A activity in the media sector.

The year saw a marked downturn in both the volume and value of deals, particularly in the UK. Completed deals numbered 135 across Europe, down from 178 the previous year. Deal value took a greater hit, coming in at EUR 17 billion compared to the staggering EUR 50 billion reached in 2007.

A combination of the credit crunch and cyclical pressures brought the European media M&A market back down to earth from the record levels of activity seen over the past couple of years. A shortage of available debt and the disparity between buyers’ and sellers’ price expectations combined to leave the media sector short of the larger deals seen recently.

Looking forward to 2009 we anticipate a larger role to be played by banks as balance sheet issues continue to affect most industry sectors as well as a certain level of defensive M&A as companies react to the credit markets and ongoing economic difficulties. Online advertising will grow in relative importance to other forms and we will continue to see attractive media companies drawing the interest of buyers looking to make “bolt-on” acquisitions.