The new Media Insights report from PricewaterhouseCoopers (PwC) shows that the number of mergers and acquisitions in the European media sector rose 75% to €43 billion (£28 billion) in 2006, the most activity for six years.
The number of deals in Europe was up 12% to 175 transactions last year and, if the UK is not included, deal value rose 123%, the highest level since 2000.
Olivier Wolf, head of media at PwC, said: “Last year saw some real growth in media M&A activity and values. In fact, we are reaching the heights of 2000 which many thought would never be seen again.
“Private equity firms recognise that the European media market is offering strong growth potential for investors and as a result invested 44% of the aggregate deal value.”
Compared to the rest of the European market, the UK moved slowly last year, with a 3% increase in mergers and acquisitions.
However, the UK is mentioned in the report with regard to its many near deals, such as the unsuccessful attempts to buy ITV and EMI.
PwC predicts that merger and acquisition activity in the UK will rebound in 2007, mirroring the recovering advertising market.
Wolf concluded: “Overall, 2006 was a very strong year for media M&A. We expect the media M&A market to remain strong in Europe in 2007 with a total of 175 deals being completed in the media sector in the year while the value of deals completed to be about €40 billion. (£26.3 million)”
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