Media deals have continued a downward trajectory when comparing the last twelve months (July 2016 – June 2017) with its two preceding periods (July 2015 – June 2016 and July 2014 – June 2015).
Reviewing the Media numbers:
- LTM June 2015: ~640 deals
- LTM June 2016: ~570 deals
- LTM June 2017: ~475 deals
- 26% decline in activity from LTM June 2015 to LTM June 2017
A few notable deals over the last twelve-months:
- The sale of LinkedIn Corp. to Microsoft Corp.
- The sale of MLB’s BAMTech to Walt Disney Co.
- The sale of Yahoo! Inc. to Verizon Communications, Inc.
Let’s harken back to last week’s discussion concerning Your community of deal sources. There were nearly 50 new sell-side intermediaries that advised on a Media transaction in the last twelve months, that had not in the prior two years. Now, that’s not to say these sell-side advisors are brand new to M&A; however, these are new entrants to Media transactions. If you are not acquainted with these advisors, it’s time to cultivate your community.
Digging deeper, let’s slice the last twelve-months of Media deals by subsector. Applying the LTM as a barometer, if your sourcing strategy is focused in the Marketing & Sales Service Services, Online Publishing & Information, or Print Publishing – jump the Acela to New York! That my friend, is where the deals are closing.
While Washington may feel like the source for entertainment these days, actual Entertainment deals are still trading in the Golden State. Perhaps more interesting, our friendly neighbors in Canada are trading an equal number of TV & Radio transactions as California, and are the second most active region for Entertainment transactions.
From time to time, it’s prudent to take a quick pulse on the market. Not that long ago, I examined overall sector trends comparing LTM Q3 2015 with LTM Q3 2016. At the time, Industrial deals were continuing to decline; yet, most other sector’s activity was rather consistent. Analyzing overall market trends can be intriguing, but the more actionable analysis derives from the more granular details. The potential impact on your strategy could be the difference between hoping to close your next opportunity, and knowing you will.