Entertainment and technology are increasingly intertwined, setting off a rush of recent media mergers and acquisitions (M&As)—and high-stakes integration projects. But M&A benefits on paper often don't materialize.
The media M&A race is on—and budgets are bigger than ever.
Increase in the value of U.S. entertainment M&As from the first quarter of 2016 to the second.
of media and entertainment executives are sizing up at least two potential M&A deals.
are targeting a deal size above US$250 million, up more than 10% from 2015.
Major M&A deals emerged in the last 12 months:
NO FAIRY TALE
But many M&A projects fail to deliver their intended benefits.
39% of corporate U.S. execs said more than half of their acquisitions in the past two years didn't generate expected returns. Why not?
23% Execution and integration gaps
If execs could do their last deal over again, here's what they'd change:
26% Do more research to understand prospect's market potential
24% Have a more complete integration plan
24% Increase timeline
Sources: PwC; Media & Entertainment Capital Confidence Barometer, Ernst & Young, 2016; Harvard Business Review; KPMG; The Los Angeles Times; M&A Trends Report, Deloitte, 2016
*Pending regulatory approval