Media M&A Insights 2009

Welcome to the 2009 edition of Media M&A Insights from PricewaterhouseCoopers. This report provides an overview of M&A in the European media sector during 2008 with analysis and comment on the market’s principal trends, driving forces and outlook for 2009.

The year saw a marked downturn in both the volume and value of deals, particularly in the UK. Completed deals numbered 135 across Europe, down from 178 the previous year. Deal value took a greater hit, coming in at €17 billion compared to the staggering €50 billion reached in 2007.

A combination of the credit crunch and cyclical pressures brought the European media M&A market back down to earth from the record levels of activity we have seen over the past couple of years. A shortage of available debt, and disparity between buyers’ and sellers’ price expectations, combined to leave the media sector short of the larger deals seen recently.

Looking forward to 2009 we anticipate a larger role played by banks as balance sheet issues continue to impact most industry sectors, and a certain level of defensive M&A as companies react to the credit markets and ongoing economic woes. Online advertising will grow in relative importance in comparison to other forms and we will continue to see attractive media companies drawing the interest of buyers looking to make bolt-on acquisitions.