Media and Entertainment M&A News Flash For 2009: It Will Get Worse

http://www.pwc.com/extweb/pwcpublications.nsf/docid/6B9511900FF64CFF8525755A005B9328

You think? Media and entertainment M&A in 2009 will be “significantly less” than last year, according to a new report from PricewaterhouseCoopers. While the value of disclosed deals in 2008 was $150.8 billion, the highest seen since 2001, that was mainly due to a backlog of four “megadeals” announced in 2006, the report said. Excluding this backlog impact, total disclosed deal value falls to $74.6 billion, a significant decline from prior periods. In terms of overall transaction volume, a total of 1,000 deals were completed in 2008, a decrease of 17 percent from 1,202 in 2007, clearly the result of challenging market conditions. Excluding this backlog, total disclosed deal value fell to $74.6 billion in 2008, a significant decline from prior periods. on volume, a total of 1,000 deals were completed in 2008, a decrease of 17 percent from 1,202 in 2007, a result of the deepening recession.
But some hope for media dealmakers amidst all the doom and gloom: “With M&A ingrained in the DNA of so many companies and the ever growing presence of private equity, we would not be surprised to find the E&M sector more active than many expect in 2009. While the overall value of closed deals in 2009 will likely remain well below the high water marks of 2007 and 2008, overall transaction volume may prove a bit more resilient. History has also shown the E&M industry to be one of the more active M&A sectors irrespective of market conditions.”