Report: Entertainment & Media Deals to Slow in 2009

Authored by Mark Hefflinger on February 27, 2009 - 10:22am.

New York - Merger and acquisition activity in the U.S. entertainment and media industry fell significantly in 2008, down 17% in overall transaction volume and declining to $74.6 billion in total deal value, while almost all indicators suggest that 2009 activity will be significantly less than in recent years, according to a report from PricewaterhouseCoopers.

The total deal value for 2008 was actually a record $150.8 billion, but this figure "was primarily driven by the completion of four 'mega' deals previously announced in 2006," the firm said.

A total of 1,000 deals were completed in 2008, down from 1,202 in 2007, "clearly the result of challenging market conditions."

"With M&A activity ingrained in the DNA of so many companies and the ever growing presence of private equity, E&M deal activity might not be as quiet as many expect in 2009," said PwC's Thomas Rooney.

"While the overall value of closed deals will remain below the high water marks of 2007 and 2008, overall transaction volume may prove a bit more resilient. History has shown the E&M industry to be one of the more active M&A sectors irrespective of market and economic conditions."

Related Links:
http://snipurl.com/crzf3 (PwC press release)

http://snipurl.com/crzdd (PaidContent)