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Entertainment & media M&A insights: Analysis and trends in US M&A activity 2010
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Published annually by PwC's Entertainment & Media Transaction Services practice, the report covers deal activity and trends in the US E&M industry.
2009 was an interesting year in the E&M deals business. Not surprisingly, depressed economic conditions and challenging credit markets in 2009 drove completed E&M deal value and total volume to their lowest levels since 2004 and 2003, respectively. However, well capitalized corporate buyers led the way in completed deal activity as E&M companies continued to seek out consolidation plays around their core competencies while at the same time evaluating/shedding nonstrategic assets. Among our findings:
- As expected, 2009's completed-deal value of $77.4 billion fell well short of the near record total of $150.8 billion seen in 2008. In terms of overall transaction value, a total of 714 were completed in 2009, a decrease of 29% from the 1,000 deals completed in 2008.
- E&M companies are currently focusing on core competencies but will likely return to diversifying their portfolio in the long term.
- Private equity interests remain strong with new investment in and through platform companies.
- E&M bankruptcies increased threefold in 2009.
- Companies across E&M are establishing themselves on new media given forecasted growth in mobile advertising, online video, social networks and video game advertising.
- Though economic and financing challenges still exist, positive pipeline metrics seen in the second half of 2009 could signal a rebound of deal activity in the US E&M industry in 2010.
