The data shows that the disclosed value of completed M&A transactions for the U.S. entertainment and media sector in 2008 was the highest it's been since 2001. But once you exclude four megadeals from 2006 that took two years to complete, the numbers shrink considerably, reflecting the state of our economy.
Still, as a PricewaterhouseCoopers
report shows, dealmakers are finding ways to navigate these turbulent times.
PwC says the trend of collaboration among corporate and private equity players is likely to increase. For example, Providence Equity Partners LLC invested $100 million in the News Corp. and NBC Universal online video joint venture Hulu in 2007. And In 2008, NBC Universal collaborated again with PE investors -- this time Bain Capital LLC and the Blackstone Group LP -- to acquire Weather Channel Interactive Inc.
One deal structure noted was that investments in distressed debt (so-called "loan-to-own" strategies) represent one of a few innovative options for PE players to put cash reserves to work without relying on large amounts of debt financing.
For another view of what's ahead in media M&A, see our sister blog Dealscape, which flagged boutique media bank Jordan, Edmiston Group Inc.'s list of 10 reasons that there will be
more media and information industry M&A this year than you might expect. -
Baz Hiralal
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Juergen Lasowski
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