02 FLEXIBLE, VERSATILE, RESILIENT | MEDIA talk
CONTINUED A WORD FROM ANDY VINER
The pandemic had a notable and predictable impact on media M&A. Global M&A values for media tipped the scales at just over USD $40 billion in the first half of 2020, and both downside risks in the economy and pressure on companies will mean that deal closure could remain a challenge through the remainder of the year. Continuing at the current pace might mean that we see the year end with a decline of almost 25% compared to last year’s global media M&A values. With logistical complications adding to the usual complexities of deal-making, across the globe domestic deals accounted for almost three-quarters of all media deals in the first half, as compared to c. 66% of deals in the prior year. On the other hand, deals that stretched beyond macro- regions fell as a proportion. Private equity, however, remained steadfast contributing to a marginally higher proportion of deals globally than in FY2019 and acted as a buyer in approximately 40% of all UK deals. Risk
is not new to this tranche of investors, and private equity firms as a group demonstrated both persistence in seeking opportunities to invest though exit volumes were notably muted. The media industry was not immune to the extraordinary disruption caused by COVID-19. But what separates media from many other sectors is that it is uniquely placed to confront the challenges ahead. Even live event organisers who sit amongst the hardest hit have shown remarkable adaptability by converting to virtual events, keeping their audiences engaged. Advertising is undergoing a notable shift in spending but the first half also highlighted the vulnerability of ad pricing to social and political issues. Undoubtedly, publishers, broadcasters, content producers, and advertisers all face real struggles but opportunities will abound for those willing to take a risk and look to the future. I hope you enjoy this issue
ANDY VINER Partner
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