M&As Slow as Execs Back Off Deals


Ernst & YoungMedia executives are becoming more cautious about executing deals, adjusting to slow-growth economic conditions.

That’s according to C-suite executives surveyed for Ernst & Young’s 14th biannual Media & Entertainment Global Capital Confidence Barometer.

Some 84% expect stability or modest growth in the next 12 months. None anticipate strong growth, down from 23% six months ago. Some 80% of media and entertainment respondents indicated they had walked away from a planned acquisition in the last 12 months, according to John Harrison, EY Global Media & Entertainment Leader, Transaction Advisory Services.

“Our clients are less willing to overpay for assets and are focused intensely on conducting thorough due diligence to ensure a potential transaction meets all key investment criteria,” Harrison told Media Daily News. “This focus is based on hard lessons learned in prior deals.”

The survey covered MVPDs, TV broadcasting, film studios, cinemas, newspaper publishing and others.

RBR+TVBR observation: This jives with what we’re hearing on earnings calls as media executives pride themselves for deals they don’t complete as well as the ones they do.