Table of Contents
Media and technology companies are increasingly using M&A as a key part of their growth strategy to penetrate new markets.
While the focus for M&A is on traditional media sectors, IoT, live streaming, wearable tech, AI, AR/VR, eSports, and drones are gaining traction.
While the M&A boom of the past two years slowed in the first half of 2016 in the media and tech sectors, dealmaking is on target to outstrip 2013.
Chapter 1: The Digital Frontier
Media and technology companies are focused on the quality and quantity of their content, and on how to distribute and monetize what they have created.
Chapter 2: Ready, Aim, Acquire
It is crucial to use a range of resources when setting M&A strategy—incorrectly evaluating a technology’s importance is the biggest risk in these sectors.
Chapter 3: Challenges of Integration
Integration is a challenging aspect of M&A. Integrating work cultures, in particular, is seen to be the most significant challenge in the M&A process.
Dealmakers should be prepared for competition as deal activity increases in the emerging technology sector.
In Q3 2016, Mergermarket surveyed 100 senior global executives to understand their strategies and views regarding M&A in the digital media and frontier technology sectors. For the purposes of this report, frontier technologies include but are not limited to augmented/mixed/virtual reality, artificial intelligence, live streaming, wearable technology, eSports and Internet of Things. Respondents were split geographically across the U.S. (50%), Western Europe and Scandinavia (25%), and Greater China (25%). Respondents were also divided among corporates (50%) and dealmakers (50%); the latter included private equity partners, venture capital investors and investment bankers.