From the explosion of smart devices and super-fast broadband to the rise of trends such as dual-screening and cord-cutting, the last decade has witnessed unprecedented shifts in the ways consumers access media and entertainment, with digital technologies unleashing successive waves of disruptive innovation.

For businesses active in the technology, media and entertainment (TME) sectors, these changes continue to have profound implications. In the face of aggressive and agile competition, trusted business models can no longer be relied on. For many companies, survival increasingly hinges on developing capabilities beyond their traditional core.

TME companies are well aware of the benefits of making cross-sector acquisitions and 84% of respondents say they expect to see more convergence deals over the next two years (26% believe there will be significantly more). Respondents are also articulating strong rationales and desires to execute convergence transactions, with 18% of firms confirming they have specific plans, and a greater number saying they

are actively investigating cross-sector transactions. However, at present, appetites for convergence among respondents and TME businesses overall remain low. It seems that many businesses may be missing out on key opportunities to stay ahead of the curve.

This report explores the drivers of convergence, identifies potential deal-blockers, and considers steps firms need to take to ease the path to convergence.

We hope that you enjoy reading this report and, as ever, we welcome your feedback.

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William Doran
Reed Smith Corporate partner
London
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Michael Young
Reed Smith Corporate partner
London