Good show of M&A deals in media

According to the latest FICCI-KPMG report on the media and entertainment sector year 2012 saw a record 65% jump in mergers and acquisition (M&A) deals in the media and entertainment sector, valued at $1.5 billion (R7,800 crore), compared with $940 million (R4,700 crore) in 2011. The M&A deal sizes in 2012 also increased more than twice compared with the deal size in 2010 ($693 million). Within the sector, television accounted for marquee M&A deals in 2012, including Network 18 Media and Investments’ acquisition of Eenadu TV for $395 million, Sony Corporation’s acquisition of a 32% stake in Multi Screen Media, and Aditya Birla Group’s acquisition of a 27.5% stake in Living Media India for a reported $70 million. 

Major broadcasters, in their quest to become national networks, are shifting their focus towards regional growth by launching/acquiring new channels and developing localised content to develop broader portfolios. Notable acquisitions in the regional space include Eenadu TV and Vissa Television Network, both Telugu, being acquired by Network 18 Media and Investments and Raj Television, respectively. 

In the print industry, notable private equity deals included Everstone Capital’s acquisition of a 35% stake in S Chand Group and their bolt on acquisition of Vikas Publishing House. 

In the film sector, L Capital and Multiples private equity acquired 15.82% stake each in Gurgaon-based multiplex major PVR Cinemas for a combined amount of $58 million. PVR acquired a 69.27% stake in Cinemax India from the promoters, and made an open offer for an additional 26% for a combined amount of $119 million. This transaction made PVR the largest multiplex chain in the country with 351 screens, followed by Inox Leisure and Big Cinemas. 

Other notable deals in 2012 included the acquisition of the Hyderabad franchisee in IPL cricket by Sun TV Network amidst the controversial termination of cash-strapped Deccan Chargers. Sun TV will pay a fee of under $16 million per year. Also, Samara Capital Partners acquired a 77.5% stake in NewsWire 18, a financial data and news agency, for $16.5 million, from Network 18, who have chosen to monetize non-core assets.

Source: http://cablequest.org/news/national-news/item/1903-good-show-of-m-a-deals-in-media.html