Experts’ calculations from the latest M&A report in media sector show that in Europe the number of acquisitions has dropped dramatically because of the crisis. Last year 90 deals worth 6.3 billion euro were completed while the year before there were 135 transactions with the value of 17.1 billion euro. Gradually as recovery on major markets can be observed we can also notice recovery signs in M&A – PwC analysts believe.
In the US the trend on M&A market was similar to the one last year – 714 deals completed i.e. 29 per cent less than year before with the total value of 77.4 billion dollar (49 percent less than the year before).
The largest transactions in media sector in Europe were sealed in UK where Wood Mackenzie advisory was taken over by Charterhouse Capital Partners fund for 612 million euro and a publishing and training BPP group acquired Apollo for 370.6 million euro. In Germany Verlagsgesellschaft Madsack bought for 263 million euro 23 per cent stake in a regional paper publishing company Hanseatische Verlags-Beteiligungs and in Netherlands Disney empire acquired 27 per cent stake of Jetix Europe entertainment group for 253 million euro.
According to PwC analysts in the second half of 2009 there were a lot more transactions in comparison to the first half and it gives reasons to beleive that this year this positive tendency will continue. On the media market there will be more and more mergers of companies from new technologies sector and more transactions as a result of growth of groups specializing in traditional media on new media market.
This year further deals, that were announced already last year, can be expected.
Rupert Murdoch’s News Corp. will buy further 9 per cent stake in Sky Deutschland for 1.3 billion euro; in France Vivendi will buy further 9.9 per cent in Canal+ France for 744 million euro and GE will be completing the announced acquisition of 20 per cent stake in NBC Universal entertainment-media concern from Vivendi for 3.5 million euro in order to enable Comcast cable operator take control over NBC (8.3 million euro).