12 PM NETWORK JANUARY 2017 WWW.PMI.ORG
Media Merger Mania
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.
The media M&A race is on—and budgets are bigger than ever.
Major M&A deals emerged in the last 12 months:
NO FAIRY TALE
But many M&A projects fail to deliver
their intended benefits.
The exhibit “Rain: Magdalena
Fernández” opened in
the renovated cistern in
Sources: PwC; Media & Entertainment Capital Confidence Barometer, Ernst & Young, 2016;
Harvard Business Revie w; KPMG; The Los Angeles Times; M&A Trends Report, Deloitte, 2016
Increase in the value of
U.S. entertainment M&As
from the first quarter of
2016 to the second.
of media and
are sizing up at least two
potential M&A deals.
are targeting a deal size
above US$250 million,
up more than 10%
24% Increase timeline
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?
23% Execution and
26% Do more research
to understand prospect’s
24% Have a more
complete integration plan
If execs could do their last deal over again,
here’s what they’d change:
Chinese conglomerate Dalian Wanda Group’s purchase of Legendary
Entertainment—the largest acquisition of a U.S.-based film company
by a China-based company to date
*Pending regulatory approval
sition of Time