UK media deals down 36% in 2009

2009 saw UK media deals hit their lowest levels since the dot com crash, falling 36% year on year, according to a new report from PricewaterhouseCoopers LLP.

The PwC report found that just 29 media transactions, totalling €2.7 billion, were completed in the UK last year, with deal volume and value down 36% on 2008 when 45 deals worth €4.1 billion were recorded.

Across Europe, a total of 90 deals were completed, worth a combined €6.3 billion. This represents a year on year fall of 33% by volume and 63% by value, said PwC. In 2008, 135 deals totalling €17.1 billion were recorded.

Andy Morgan, TMT corporate finance partner, PricewaterhouseCoopers LLP, said: “Trade buyers might have been expected to make a bigger splash last year given the generally low level of PE competition. But only exceptional assets were saleable and, with all but the most desperate vendors unwilling to countenance credit-crunch pricing, negotiations often ended in deadlock.”

He added: “Looking ahead UK deal volumes picked up in the second half of 2009 therefore, with several sizeable deals pending completion at the year end, the early signs for 2010 look encouraging.”

“As banks reach the end of track in terms of refinancing and restructuring options, we expect to see more sales of non-core assets and even the wholesale breakup of some companies in the sector.”