The merger industry is going through an incredible time right now, and it’s expected to continue for the rest of this year. This is something I have often talked about in past posts. But among the mergers that will take place, which industries will be slightly ahead of the race? There are a couple of options on the list, but let’s just focus on the media sector right now.
Pick up some of the recent deals made in the past few months, and you will realize many of them belong to the media industry. And a lot of these deals are high profile deals that have been made amongst all the biggest names in the sector. If the pace remains the same, the landscape of the American media industry is up for a really huge change that will lead to so many heated debates.
What about the value? How much worth do all of these deals have? A report which analyzes the performance of the first quarter claims the combined value to be around $754 billion for all merger activities that took place in the media and entertainment industry. If we go back 12 months in the past, the activity levels were valued at $41 billion at that time. So this year witnessed a rise of 809%, which is quite high.
A media professional told the press that the marketplace is really dynamic right now, and everyone is moving towards digital. He added that all the companies were trying to place themselves in a position that will benefit them for the next five years, and this is just not limited to the media industry. It is taking place in sectors across the country.
The highest value which was recorded this year was between two of the biggest names in the industry: Comcast and Time Warner Cable. The deal is worth $45 billion, but regulatory approval for it is still pending. AT&T is also in process of acquiring DirecTV, and if the deal is finalized, it will be worth $50 billion, breaking the previous record.
As can be seen, the value of deals is rising higher and higher, but the volume has declined for all M&A industries. The advertising industry has seen around 49 deals being made this year, which by the way is the highest number of deals for any sector.