After 18 months of financial and geopolitical uncertainty, marked by recession concern, macroeconomic stability is making a comeback. This restoration is driving a resurgence in mergers and acquisitions (M&A) exercise within the media sector.
The primary half of 2024 recorded a 17% year-on-year (YoY) enhance in deal volumes within the sector, climbing from 60 transactions to 70, in accordance to a brand new report by Collingwood, a consulting and advisory agency specializing within the media sector. This development was pushed by Europe and the UK, which recorded 42 offers in H1 2024, up 35% YoY.
Occasions companies, which makes a speciality of conferences, commerce reveals, awards, and one-on-one conferences, emerged as probably the most lively space for dealmaking in Europe in 2024 with 69 offers. The UK, particularly, gamers a central position on this surge, the report says, internet hosting a number of distinguished and personal equity-backed occasion organizers reminiscent of Clarion Occasions, CloserStill Media, Hyve Group, Informa, Nineteen Group, and RX International.
In the meantime, info companies, which generate income from high-value content material subscriptions and different recurring income fashions, additionally drove important M&A exercise in Europe, with 62 offers recorded in comparison with 42 within the US.
Although Europe and the UK led the media M&A panorama in H1 2024, the report notes that the US remained a principal market, significantly within the media vertical, which encompasses publishers that generate income from multichannel sponsorships, content material advertising and marketing, and demand- and lead-generation providers.
The US led globally with 70 media-specific transactions in 2024, forward of Europe with 46 offers. The development is pushed partially by the nation’s bigger advertising and marketing market dimension, and the actions of personal equity-backed consolidators like Endeavor and BridgeTower Media. These agency wish to purchase business-to-business (B2B) digital advertising and marketing income platforms, the report says.
Key offers underscored this rebound in late 2024. Notably, media firm Axel Springer bought its German finance platform, Finanzen.internet and related buying and selling platform to non-public fairness agency Inflexion for a staggering EUR 400 million, in accordance to media reviews. The transaction was one of many largest fintech offers in Germany this yr.
In December, Dow Jones acquired London-based WorldECR for an undisclosed quantity. WorldECR is a supplier of stories, information and evaluation for compliance professionals. WorldECR will combine with Dow Jones Danger and Compliance, which reported a 16% YoY enhance in Q1 2025 earnings to US$81 million.
Data companies stay most beneficial, adopted by media corporations
In line with the Collingwood report, valuation multiples this yr stay broadly constant throughout enterprise fashions.
In 2024, info companies continued to be thought-about probably the most invaluable, with EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) multiples usually standing between 13x and 16x. These excessive valuations stem from their recurring enterprise fashions and excessive margins.
Media companies adopted, with multiples usually ranging between 8x and 12x. Trendy and data-led media companies stand within the larger finish of this vary, whereas conventional publishing or ad-led companies are seen as riskier, exhibiting thus decrease multiples.
Lastly, occasions companies are usually valued decrease, at 7x to 11x EBITDA. Nevertheless, they will command larger multiples in the event that they host scaled commerce reveals, have a powerful recurring enterprise (e.g., excessive rebooking charges for commerce reveals) or exhibit worldwide growth alternatives.
Optimism forward for 2025
Waiting for the rest of 2024 and 2025, the media M&A panorama seems promising, the Collingwood report says. With inflation easing and rates of interest starting to fall, the price of capital is lowering, creating favorable situations for dealmaking. As well as, political uncertainty is anticipated to decrease in 2025, additional stabilizing the market, the report says.
Patrons are anticipating M&A exercise to proceed to extend over the following 18 months, shifting again in the direction of 2022 ranges. The occasion vertical is anticipated to stay a spotlight level, pushed by its profitability and development potential.
In accordance to a report by A Media Operator, main gamers reminiscent of Informa and EasyFairs, but in addition PE corporations are actively pursuing strategic acquisitions and in search of smaller corporations for consolidation.
Informa, a distinguished British publishing and exhibitions group, has already spent some US$3 billion over the previous few years on property like Business Dive, Tagus, Ascential, and others. Nevertheless, the corporate nonetheless has the capability for giant acquisitions, the report says.
In the meantime, EasyFairs, a Brussels-based worldwide occasions firm, secured PE funding earlier this yr to launch new occasions, broaden its geographic and sector presence, and faucet strategic M&A alternatives.
Questex is one other info and occasions firm reportedly looking out for acquisitions, media or occasions, searching for offers that will seemingly fall into the US$50 million to US$60 million vary, based on the report.
BridgeTower Media, which makes a speciality of B2B media and occasions, and HW Media, writer of HousingWire, RealTrends and Reverse Mortgage Every day, are additionally mentioned to be taking a look at M&A alternatives.
Featured picture credit score: edited from freepik
