Skip to main content

Technology, Media and Entertainment M&A Trends

A new market study by Mergermarket, reveals that 84 percent of Technology, Media and Entertainment (TME) companies expect to see more cross-sector merger and acquisition (M&A) deals over the next two years.

The resulting report from this study outlines the rapidly evolving M&A landscape for global TME companies. This change is being driven by an increasingly fierce battle fought by TME firms who are attempting to gain a competitive edge in the market, via convergence.

In fact, 2014 saw new levels of convergence deals amounting to $34.5 billion, with this trend predicted to increase further, according to the latest worldwide assessment by the Mergermarket Group.

Cross-sector convergence varies widely across the TME sectors. Entertainment businesses are the most willing to branch out, with more than 33 percent planning non-entertainment purchases. This willingness has the potential to put acquisitive businesses ahead, but they must be aware of the potential risks involved in cross-sector acquisitions.

One major challenge for cross-sector acquirers is understanding a new area of business. This can be a steep learning curve. For a big tech company, the biggest challenge is just understanding the new marketplace.

The movie industry doesn’t operate in the same way as music, or the same way as computer games. Moreover, TME companies that are seeking growth are increasingly crossing borders -- with 57 percent saying their next acquisition is likely to be outside their home market.

Of those businesses in search of cross-border opportunities, 37 percent say they are most likely to target the Asia-Pacific region, followed by Western Europe (23 percent) and North America (17 percent).

These expectations must be set against the need for firms to understand the political and regulatory risks in the target markets. Besides, this desire to converge is not limited to the global giants within the industry.

There has also been a recent upsurge in so-called Quad Play deals, in which telecom service providers seek to become a one-stop shop for pay-TV, broadband internet access, fixed and mobile telephony.

"In the face of aggressive and agile competition, trusted business models can no longer be relied upon for growth. For many companies, survival increasingly hinges on developing capabilities beyond their traditional core, said Nick Cheek, global managing editor of Remark, the events and publications division of the Mergermarket Group.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of