FLEXIBLE, VERSATILE, RESILIENT | MEDIA talk 14
UK MEDIA M&A: HOT SECTORS
Publishing saw the second largest number of media M&A through H1 2020, totalling 27% of all UK deals. Specialist publications drew interest from investors and trade- buyers looking to consolidate. With consumers in lockdown, the ground proved fertile for a spike in magazine and newspaper subscriptions.
Advertising giant WPP sold 60% of its holding in Kantar to Bain Capital last summer. The latter also committed an additional investment for WPP’s remaining stake in a deal that valued Kantar at close to USD $4 billion. In May, MSQ Partners, an international marketing communications group, secured a cash investment from London-based PE house LDC valuing the company at almost GBP £38 million. The declared intent of the investment was to aid MSQ in its ambition to expand outside the London market and pursue further growth opportunities for its agencies. Towards the end of June, MSQ took a step in this direction by announcing that it had approached publicly-listed advertising company Be Heard Group. The offer puts a value of GBP £6.2 million on Be Heard’s equity with the deal establishing a combined group consisting of more than 750 staff across the UK, US, and Asia capable of establishing scale in the London market and rolling out enhanced digital and analytical capabilities across MSQ’s global offices.
S4 Capital continued to build out its programmatic wing under the aegis of the MightyHive brand, adding to a couple of notable acquisitions in 2019. MightyHive furthered its presence in the Latin American market by completing the acquisition of Digodat, an Argentinian web analytics firm, in May for an undisclosed MightyHive furthered its presence in the Latin American market by completing the acquisition of Digodat, an Argentinian web analytics firm, in May for an undisclosed consideration. consideration. However, shortly into the second half of the year, MightyHive announced another couple of deals to further its digital consultancy services including Australian Lens10 and US-based Orca Pacific. During H1, S4 Capital also added to its content wing in the early stages of 2020 with the acquisition of Mexican digital advertising of 2020 with the acquisition of Mexican digital advertising firm Circus Marketing, which completed in March. firm Circus Marketing, which completed in March. S4 Capital has continued to press ahead with its two-pillared model – programmatic and content - that should put it in a good position to satisfy the growing need for digital-first solutions. S4 C pital has continued t press ahead with its two-p llared m del – programmatic and content - that should pu it in a good position to satisfy the growing n ed for digital-first solutions. H wev r, shortly into the second half of the year, MightyHive announced ano her couple of deals to further its digital consultancy serv ces in luding Australian Le s10 a d US- ba ed Orca Pacific. During H1, S4 Capit l also added to its content wing in the early stages
Perhaps surprisingly, this interest has not been limited to digital editions. UK-based digital marketing agency Jellyfish, which has a firm footing in the magazine
subscription world, has pointed out that print subscriptions more than doubled in the early stages of lockdown, with online subscriptions increasing as well, though at a lower rate.
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