Get ready for a busy year of media mergers and acquisition activity – that’s the headline from PwC’s Entertainment and Media Report.
There are a slew of cash rich buyers—media conglomerates, tech giants, and Private Equity players with new capital. And new technology is creating new digital revenue – and new value for content companies.
The blurring of the line between media and technology means we’ll see more deals between the two sectors. And the fact that Facebook is expected to IPO means it’ll have more cash for acquisitions.
Deal Pick Up
PwC predicts a pick-up in mergers and acquisition value and volume this year. In 2011 media and entertainment deal value increased to $52 billion from $27 billion in 2010. But once value related to the Comcast-NBC Universal(*Note: Comcast is the parent company of CNBC) deal is stripped out, deal value was pretty much flat from 2010 to 2011. Deal volume decreased 14 percent to 801 deals while the average deal value grew 25 percent to $160 million last year.