The first report in our Deal Dimensions series, in partnership with Mergermarket, reveals that 84 per cent of technology, media and entertainment (TME) companies expect to see more cross-sector M&A convergence deals over the next two years.
The report, entitled Wired up: The convergence of technology, media and entertainment, explains the changing M&A landscape for TME firms. This is being driven by an increasingly fierce battle fought by TME firms who are attempting to gain a competitive edge in the market. 2014 saw new levels of convergence deals amounting to US$34.5 billion, with this trend predicted to increase further.
The report reveals that cross-sector convergence varies widely across the TME sectors. Entertainment businesses are the most willing to branch out, with more than 33 per cent planning non-entertainment purchases. This willingness has the potential to put acquisitive businesses ahead, but they must be aware of the potential risks involved in cross-sector acquisitions.
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