cablemedia_1 27/02/2015 15:48 Page 6
MONITOR
Cabsat deals dominate Euro media M&A
ccording to new PwC analysis of
M&A deals across the European
entertainment and media
industry in 2014, the rebound in deals
value since the post financial crisis
trough has been far more marked than
the recovery in deal volumes.
Aggregate media deal value in 2013 and
2014 was three times
the annual levels of
2010-2012 – an
increase that reflects
the return of
‘megadeals’ in the
media space over the
past two years,
particularly in the
cable and satellite
sector.
According to Mark
Maitland, TMT
strategy partner at
PwC, the total value
of European
entertainment and
media deals in the second half of 2014 was
the largest ever seen in a half year period.
Megadeals completed in 2014 included
Liberty Global’s acquisition of Ziggo, and
BSkyB’s acquisition of Sky Deutschland and
Sky Italia.
Cable and satellite deals dominated the
top ten European deals in 2014, accounting
for the six largest deals – compared to only
three sizeable cable and satellite deals in
2012-13. The top 10 UK entertainment and
media deals were led by transactions in the
television, publishing and marketing services
sectors.
The rankings also reveal contrasts between
the UK and Europe. European deals are
A
dominated by corporate trade buyers while in
the UK, private equity has a more significant
presence in the top ten, such as Apax
Partners’ purchase of the remaining stake in
Trader Media Group (now Auto Trader), and
other large deals completed by BC Partners,
Cision (GTCR-owned) and Lake Capital
Partners.
Despite corporates accounting for the
largest European deals in 2014, the general
trend is that private equity investors are
continuing to show strong interest in media
assets, particularly in the UK market.
According to PwC, three key themes are
driving M&A activity:
1. Continued transformation of television
and content
During 2014, ongoing shifts in TV viewing
and the ownership of content and
distribution drove M&A activity across
Europe, through a combination of tripleplay deals, cross-border plays by US
majors, and diversification moves by TV
channels.
2. Digital remains a key M&A driver
Digital technology is at the heart of media
and M&A for several reasons. It creates
change and demands investment; it makes
businesses buy new capabilities in search
of growth; and it triggers disposals of nondigital businesses to raise funds for digital
acquisitions and spending.
3. A growing appetite
for B2B data and
events businesses
Having weathered
the downturn more
robustly than
business-to-business
(B2B) magazines,
B2B events and B2B
digital data services
have now returned to
growth, and are
attracting acquisition
interest both from PE
investors and
corporates.
Nick George, head
of TMT transaction services at PwC, said the
three themes highlighted would continue to
underpin much of the E&M deal activity
across Europe in 2015. “We anticipate activity
will be driven by consolidation, digitisation
and portfolio restructuring. We are confident
that the European media deals environment
in 2015 will be every bit as exciting as 2014
and potentially more so, even given an
uncertain macroeconomic backdrop in the
Eurozone. We expect growth as media
companies continue to invest in digital, with a
further positive factor that private equity
investors are continuing to raise funds and
show active interest in Europe’s media
sector,” he advised.