PWC: M&A down 20%
January 27, 2020
PWC reports merger and acquisition activity in the media and telecoms fell in Q4 meaning deal making was down for all of 2019.
There were 137 transactions announced in the fourth quarter, down 20 per cent from the fourth quarter of 2018. Those deals were worth $18.3 billion, down 12 per cent. For the year 635 deals, down 27 per cent. Value was $91.9 billion, down 27 per cent.
“Despite the contraction in deal volume, 2019 was a transformative year for the sector […] disrupting the relationship between traditional media and Big Tech,” PwC said. “We expect the 2020 M&A market to remain consistent with 2019, as leading industry heavyweights roll-out key strategic offerings, all while evaluating their internal portfolio, looking for opportunities to monetise existing assets and repurpose capital.”
“The 2019 M&A market softened much more than we had originally anticipated and we expect 2020 levels to be commensurate with 2019. Why? We believe the dominant market players will continue to focus on their internal strategies in order to solidify their market position in a year that will shift the consumer landscape for decades to come,” the firm added