Media Merger Mania

When Entertainment and Technology Companies Merge, Success Isn't Guaranteed

 
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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.

HIGH OCTANE

The media M&A race is on—and budgets are bigger than ever.

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Increase in the value of U.S. entertainment M&As from the first quarter of 2016 to the second.

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of media and entertainment executives are sizing up at least two potential M&A deals.

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are targeting a deal size above US$250 million, up more than 10% from 2015.

SHOPPING SPREE

Major M&A deals emerged in the last 12 months:

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NO FAIRY TALE

But many M&A projects fail to deliver their intended benefits.

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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?

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23% Execution and integration gaps

If execs could do their last deal over again, here's what they'd change:

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26% Do more research to understand prospect's market potential

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24% Have a more complete integration plan

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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

JANUARY 2017 PM NETWORK
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