1ST HALF 2016 KEY HIGHLIGHTS
- Six of the industry’s top ten largest deals in 1st Half 2016 occurred in the Entertainment segment.
- This consisted of Tencent Holdings Ltd.’s announced acquisition of Supercell (video game) for $8.6 billion; Lionsgate’s announced acquisition of Starz, LLC (television network) for $4.4 billion; NBCUniversal, LLC.’s announced acquisition of DreamWorks Animation LLC (film studio) for $4.1 billion; Dalian Wanda Group Co., Ltd.’s acquisition of Legendary Entertainment (film studio) for $3.5 billion; Corus Entertainment, Inc.’s acquisition of Shaw Media Inc. (television network) for $1.87 billion; and Kakao’s announced acquisition of LOEN Entertainment (music label) for $1.41 billion.
1ST HALF 2016 KEY TRENDS
- Total transaction volume in 1st Half 2016 decreased by seven percent over 2nd Half 2015, from 949 to 883.
- Total transaction value in 1st Half 2016 rose by 49 percent over 2nd Half 2015, from $64.91 billion to $96.72 billion.
- The industry’s top ten largest deals accounted for 71 percent of aggregate value in 1st Half 2016, compared to 38 percent in 2nd Half 2015.
- The median revenue multiple increased from 1.7x in 2nd Half 2015 to 2.0x in 1st Half 2016. The median EBITDA multiple improved from 8.8x in 2nd Half 2015 to 11.1x in 1st Half 2016.
M&A Market Overview
Berkery Noyes tracked 4,491 Media & Marketing transactions between 2014 and 1st Half 2016, of which 961 disclosed financial terms, and calculated the aggregate transaction value to be $224.32 billion. Based on known transaction values, we project values of 3,530 undisclosed transactions to be $74.18 billion, totaling $296.52 billion worth of transactions tracked over the past two and a half years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.0x revenue and 10.0x EBITDA.