US Entertainment, Media and Communications Deal Insights: First quarter 2015

May 2015
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US Entertainment, Media and Communications Deal Insights: First quarter 2015

At a glance

Overall deal value started strong in Q1 '15 despite volume at its lowest point in two years. Although it may be too soon to tell which direction deal volumes will trend in the remainder of 2015, we remain optimistic and expect M&A will continue to be robust for the sector. And with the abandonment of one transformative Cable deal, rumors are swirling about potential deal partners. In this issue, PwC provides a summary of first quarter 2015 deal activity, megadeal activity and an outlook for key sectors.

2015 kicked off with six megadeals (deals valued at over $1B) totalling $34.4 B or 90% of total deal value for Q1. The cable sector is poised for consolidation and we anticipate an uptick in both deal volumes and values in 2015 as the key players in this sector re-evaluate their strategy and path forward. Outbound deals remained steady in Q1'15 with Internet and Information continuing to lead the subsector activity with a notable spike in activity in outbound Communications deals. Competition is tough across the sector with new market entrants and unique partnerships forming around the ecosystem, those deal makers with access to capital and healthy balance sheets will remain active to execute on their growth strategies.

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