Consolidation of TV production companies

When we think about the consolidation of TV production companies, we have to bear in mind that this work forms part of global portfolios that include TV channels, Telcos, big IT infrastructure providers, news groups and publishers among many other sectors.

From the RTS magazine in June 2020:

“In May, the merger between Virgin Media and O2 was announced, a deal that will create a business with revenues of £11bn and 46 million customer accounts. Underlying it are two forces that have been shaping the media landscape for some time: the drive for scale, resulting in consolidation, and convergence between the telecommunications and media sectors.”

The article looks at how the global pandemic will shape the consolidation of this industry…

“Never waste a crisis,” is the oft-quoted cry in the business press of late, and those with financial muscle are getting ready to pounce on distressed stock. The pandemic has seen the price of many media shares plummet, while borrowing remains cheap, setting the scene for a demonstration of Darwinian economics.

Guy Bisson, research director at Ampere Analysis, says two factors will drive mergers and acquisition activity: “One is the impending economic collapse globally, and the other is simple disruption that was going on anyway around streaming migration.” This will drive companies to “seek scale in a storm and look for bargains” over the next year or two.

 

This entry was posted in Factual & Entertainment sector data, Feature film data, Film & TV industry data, Film & TV industry policy, High End TV data, Ownership & Control, Public Service Broadcasting, SVoD and tagged . Bookmark the permalink.

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