As the Pricewaterhouse Coopers (PwC) "Media Insights" study predicts, mergers and acquisitions in the media industry will continue to increase. In 2005, PwC counted 156 transactions of this type. This is an increase of 61 percent compared to the previous year. The total amount of transactions rose by 52 percent. In Europe, 89 transactions were recorded (previous year 54) with a total volume of EUR 16.5 billion (previous year EUR 8 billion). Only 15 of these were transatlantic transactions by US buyers. Only five of these transactions amounted to more than EUR 100 million. Within the European media industry, most mergers and acquisitions took place in the television and radio sector and no longer in the publishing sector. Television and radio companies were increasingly on the lookout for acquisitions in the alternative media segment in order to secure the supply of their mass markets and protect themselves against declining advertising revenues. Private equity investors are increasingly investing in the radio and television sector.
The publishing sector continues to see itself threatened by the online sector, writes PwC in the communiqué. This explains the purchases of Internet sites by traditional publishers. They want to secure revenue from the most important forms of advertising, in particular classified ads, in this way.
Due to the massive increase in online advertising, the marketing services industry is required to make the developing online channels as advantageous as possible. This objective, along with the need to provide comprehensive global services, has led to a series of acquisitions. Marketing services companies will continue to make acquisitions in 2006 in their efforts to provide a global digital offering.
PricewaterhouseCoopers is forecasting an increase in the number of transactions to a total of 170 and a total volume of around EUR 30 billion in 2006 due to three years of sustained market growth.