© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Wired Up: The Convergence of Technology, Media and Entertainment
Posted 20th August 2015

Wired Up: The Convergence of Technology, Media and Entertainment

Convergence drives technology, media and entertainment M&A to new heights as companies fight for competitive edge.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Wired Up: The Convergence of Technology, Media and Entertainment

Wired Up: The Convergence of Technology, Media and Entertainment

Image

Convergence drives technology, media and entertainment M&A to new heights as companies fight for competitive edge.

A study of 100 senior corporate executives by global law firm Reed Smith, in partnership with Merger market, reveals that 84% of technology, media and entertainment (TME) companies expect to see more cross-sector M&A convergence deals over the next two years.

The report, entitled Wired up: The convergence of technology, media and entertainment, explains the changing M&A landscape for TME firms. This is being driven by an increasingly fierce battle fought by TME firms who are attempting to gain a competitive edge in the market. 2014 saw new levels of convergence deals amounting to £22 billion, with this trend predicted to increase further.

The report reveals that cross-sector convergence varies widely across the TME sectors. Entertainment businesses are the most willing to branch out, with more than 33% 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.

Gregor Pryor, Reed Smith partner and co-chair of the firm’s global Entertainment and Media Industry Group, explains: “One major challenge for cross-sector acquirers is understanding a new area of business. This can be a steep learning curve. If you are a big tech company, the biggest challenge is understanding the space. Film doesn’t operate in the same way as music or the same way as computer games. Companies need to learn about a new sector.”

The report also shows that TME companies that are seeking growth, are increasingly crossing borders, with 57% saying their next acquisition is likely to be outside their home market. Of those businesses in search of cross-border opportunities, 37% say they are most likely to target Asia-Pacific, followed by Western Europe (23%) and North America (17%). These expectations must be set against the need for firms to understand the political and regulatory risks in the target markets.

This desire to converge is not limited to the global giants in the industry. There has been a recent upsurge in so-called ‘quad play’ deals, in which telecom providers seek to become a one-stop shop for TV, broadband, fixed and mobile telephony.

Michael Young, corporate finance partner at Reed Smith, explains: “With increased cross-border convergence activity, companies must be prepared for the regulatory challenges that will result as they move from one jurisdiction to another. Local guidance, whether that be legal, commercial or financial, thorough due diligence and thoughtful deal structuring is critical to the success of these transactions.”

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

Categories: Innovation, M&A


You Might Also Like
Read Full PostRead - Eye Icon
Novel Biological Medicines
Innovation
01/03/2016Novel Biological Medicines

Batavia Biosciences focuses on accelerating the transition of novel biological medicines from laboratory bench to the clinic with improved success and lower cost.

Read Full PostRead - Eye Icon
Everything You Need to Know Before Entering the Construction Industry
News
25/04/2023Everything You Need to Know Before Entering the Construction Industry

Are you considering a career change and contemplating entering the construction industry? If so, you're in the right place. The construction sector offers a wide range of job opportunities, from manual labour to professional roles, such as architects and engin

Read Full PostRead - Eye Icon
Over 35 Years of Sensational Success
Legal
17/01/2023Over 35 Years of Sensational Success

Complex litigation law can be extremely challenging to navigate however, with a strong, level-headed load of experience, we find ourselves in good hands with Marc J. Bern & Partners LLP.

Read Full PostRead - Eye Icon
Wesco Aircraft Acquired by Affiliate of Platinum Equity, Combined with Pattonair at Closing
M&A
13/01/2020Wesco Aircraft Acquired by Affiliate of Platinum Equity, Combined with Pattonair at Closing

The combined company, which will be headquartered in Valencia following closing, becomes a $2.4 billion business with a global footprint in 17 countries and more than 4,000 employees. The combined company will serve more than 8,400 customers, including many of

Read Full PostRead - Eye Icon
Get to Know the BSP Rewards Partner Program
Innovation
01/09/2017Get to Know the BSP Rewards Partner Program

Get to Know the BSP Rewards Partner Program

Read Full PostRead - Eye Icon
Over 10,000 COVID-19 Phishing Scams Reported to HMRC During Height of Pandemic
News
21/08/2020Over 10,000 COVID-19 Phishing Scams Reported to HMRC During Height of Pandemic

Her Majesty's Revenue and Customs (HMRC) is investigating 10,428 email, SMS, social media, and phone scams exploiting the Covid-19 pandemic, according to official figures.

Read Full PostRead - Eye Icon
Enhancing The Banking Experience Through Personalization
News
20/05/2024Enhancing The Banking Experience Through Personalization

Enhancing The Banking Experience Through Personalization People today seek personalized experiences in all aspects of their lives. Financial services are no exception to this growing trend, as customers increasingly expect specially tailored solutions to be pa

Read Full PostRead - Eye Icon
Workplace Injuries – What to Do Next, Including Legal Advice
News
23/10/2023Workplace Injuries – What to Do Next, Including Legal Advice

Workplace Injuries – What to Do Next, Including Legal Advice In our fast-paced and often demanding work environments, accidents can happen. Workplace injuries can range from minor incidents to more severe accidents, and knowing what to do when they occur

Read Full PostRead - Eye Icon
Driving Global Developments
Leadership
01/04/2021Driving Global Developments

As the world has become more globalized, business has had to move to match it. With every country working to different standards, it’s little surprise that many have struggled to make the best possible investments in time and resources. Named Most Innovative



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow