h2 2020 | media talk
media talk | h2 2020
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A WORD FROM ANDY VINER continued
that. With its attractiveness to overseas investors and potential to bounce back, it made up a big chunk of all deals struck through 2020, both within the UK and globally. Many of these deals focused, as globally, on companies looking to add to or enhance their digital reach and targeting capabilities. In the world of entertainment, meanwhile, content is still king, and the persistent battles over streaming capabilities have only strengthened the appeal of production- related businesses. Digital publishing is also seeing a steady flow of deals as PE and trade buyers vie for the best brands and assets. Interactive gaming remains another space to watch. So in 2021, we may not quite see a return to pre-COVID deal volumes just yet; there are still too many uncertainties to resolve. But the stage is certainly set for another very active twelve months… We hope you find the latest edition
That said, while revenue growth may be slower initially through Q1, we anticipate recovery to speed up over the rest of the year, and there could well be a shorter path for M&A too. Globally, the media sector retains significant upside potential, and deals were noticeably picking up in H2 of 2020. PE (private equity) has played a fundamental role in keeping M&A rolling across the mid- market, both in established areas of interest and in newer directions. PE houses recorded a 19% increase in activity over the second half of 2020, as compared with H1 2020. US media deal activity slowed in 2020 compared to previous years, in the wake of recent historic market shifts. But the slowdown also created pent-up demand to put cash to work and capture new opportunities as consumer media consumption habits change. The end of the year brought a resurgence in ad spending, which was a boost both to entertainment companies and the media agencies that develop and place ads. Signs point to a busy year for deal flow and investment in 2021. In the UK, as around the world, few businesses escaped unscathed from the pandemic’s blanketing effect on the economy. But pre-pandemic, the UK’s creative industries contributed more than GBP £111 billion to the UK economy, and the advertising and marketing subsector made up a quarter of
of our report useful – do please share your comments or feedback at andrew.viner@bdo.co.uk.
ANDYVINER Partner, Global Head of Media & Entertainment
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