Media Mergers, Acquisitions Poised For Drop In '09
March 2, 2009 at 5:29 AM (PT)
Mergers and acquisitions in the U.S. entertainment and media sector reached $150.8 billion in 2008, the highest since 2001, but this year isn't shaping up so well, writes REUTERS, citing a HOLLYWOOD REPORTER report. Last year's impressive figure, in fact, was largely due to a backlog of deals announced in 2006 that took about two years to close, according to PRICEWATERHOUSECOOPERS, which issued its M&A report FRIDAY.
Excluding that backlog of four big deals, M&A activity last year would have clocked in at $74.6 billion, about the same as in 2005 but well off 2006-2007 levels.
Those four backlogged deals were: the $27.9 billion sale of HARRAH'S ENTERTAINMENT; the $25.9 billion sale of CLEAR CHANNEL COMMUNICATIONS; the $16.2 billion controlling acquisition of DIRECTV by LIBERTY MEDIA; and the $6.2 billion merger that created SIRIUS XM RADIO.
There were 1,000 deals closed in 2008, though the values were disclosed in only 283. That's down from 1,202 in 2007, 345 of which were disclosed. As of DECEMBER 31st, $6.7 billion in deals were pending, a significant drop from the same period a year ago when $100.8 billion in deals were pending.
Other large deals last year included the $3.1 billion acquisition of DOUBLECLICK by GOOGLE, the $2.9 billion acquisition of GEMSTAR-TV GUIDE by MACROVISION and the $1.8 billion acquisition of CNET NETWORKS by CBS.