CQ- Media and entertainment M&A tipped to rise

Media and entertainment companies are more confident in the global economy than ever before, according to a recent survey of senior executives conducted by advisory firm EY for the 10th Capital Confidence Barometer: Media & Entertainment. The report shows 64 per cent of executives believe the state of the global economy is improving, compared with 59 per cent one year ago. Executives are more confident in the likelihood of closing deals (33 per cent compared with 23 per cent a year ago), and coupled with a narrowing valuation gap, this is creating momentum to get deals done.The report is a survey of senior executives from large media and entertainment companies around the world that gauges corporate confidence in the economy, identifies boardroom trends and provides insight into companies’ capital agenda.

Respondents’ confidence in the availability of credit and financing is at its highest level in five years, which provides a solid platform for deal-making and has resulted in media and entertainment companies significantly increasing their borrowing from the previous year. Eighty-five percent of respondents believe credit availability is either stable or improving, and 52 per cent of respondents indicate it is improving, compared with 36 per cent one year ago. Thirty-five percent of executives indicated they have debt-to-capital ratios greater than 50 per cent, which is up from 17 per cent the year before, which shows a dramatic increase in borrowing. Perhaps the greatest indicator of the industry’s confidence in credit and financing availability is that 51 per cent of executives plan to use debt as their primary source of deal financing during the next year, compared with only 21 per cent one year ago.

Source: http://cablequest.org/news/international-news/item/4939-cq-media-and-entertainment-m-a-tipped-to-rise.html
Source: http://cablequest.org/news/international-news/item/4939-cq-media-and-entertainment-m-a-tipped-to-rise.html