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Digital Growth / Transformation MD, CCO, COO, Advisor (ex Amazon, Vodafone, Sky , BBC Studios and Silicon Valley Start Ups)

Media and Entertainment M&A is back.. Over the first 4 months of 2024 we’ve seen a flurry of big ticket deals. ·      In media production: KKR backed Mediawan has just acquired LEONINE Studios. In March, Fremantle bought Oaktree backed Asacha Media Group, and earlier this year All3Media sold to RedBird Capital Partners . ·      In music: Blackstone has just acquired Hipgnosis Song Management for $1.57 billion, and earlier this month EQT Group backed Pophouse Entertainment acquired iconic rock IP ‘KISS’ for $300m. ·      In Video Games: The Carlyle Group sold Jagex (developer of RuneScape) to CVC Capital Partners for £910m. ·      In Sports:  Bridgepoint backed Dorna Sports (owner of MotoGP) sold to Liberty Media for €4.2 billion, and Disney, Fox and Warner pooled their sports assets to create a new streaming joint venture. ·   In Diversified Entertainment:  Silver Lake took Endeavor (owner of WME, WWE & UFC) private in a $13 billion transaction, and RedBird Capital Partners and KKR backed Skydance entered into exclusive negotiations to buy Paramount. ·      In the Creator Economy:  YouTube stars Dude Perfect raised $300m from Highmount Capital to expand their franchise. All these deals have one thing in common. The acquirer is buying high quality IP assets with growth potential.  However the route to unlocking this value is changing. Seismic shifts in the Media and Entertainment landscape mean Operators need a new Playbook to build the businesses of tomorrow. The winning Companies of tomorrow will be bolder, capitalising on new growth opportunities to serve increasingly digital audiences with a more expansive set of cross media experiences. As inflation declines and the cost of borrowing falls, expect M&A momentum to continue. Current trends will continue with: ·      More divestments from Operators who lack the vision, cash & scale to navigate the current market environment. ·      Growing momentum behind consolidation M&A as incumbents bulk up to compete in an increasingly global and digital market where Big Tech is shaping industry development. But we will also see the start of a new wave of M&A that capitalises on the opportunity for more radical reinvention with: ·      More Private Equity backing of Management Teams with the vision & capability to reimagine underleveraged IP for the digital age. ·      M&A combinations that bring together traditional media IP & content businesses with next gen Ad Tech, digital distribution and social media assets, as incumbents think more ambitiously about their future. All parts of the Media & Entertainment ecosystem will be impacted by current M&A momentum, so my advice is build a view now on whether and how you want to participate. As the market reshapes you can’t stand still and M&A is one key way to control your destiny. If you'd like to learn more about emerging opportunities do get in touch. #entertainment #disruption #strategy #sports #videogames #technology #Mergers

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Matthew Winch ACA

Top 100 Finance Pro. 2024, portfolio CFO scaling and turning around businesses without having to look at spreadsheets, PwC Qualified ACA, Expert Financial Modelling, ex-Hedge Funds & Investment Banking (20yrs)

2mo

Cool graphics....

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