In Q1 2015, Mergermarket surveyed 100 corporate senior executives (CEO, CIO, Director of Strategy). All of the companies included in this survey are considering an M&A transaction in the technology, media and entertainment (TME) mid-market under $500m over the next two years. All companies have their main operations in the TME sector, with 50% of companies being active in the technology sector, 25% in media and 25% in entertainment.
The representation by company size is $50m–$499m (45%), $500m–$1bn (45%) and +$1bn (10%). The respondents are evenly split across the US (34%), Europe (33%) and Asia (33%).
The survey consists of a combination of qualitative and quantitative questions and all interviews were conducted over the phone by appointment. Results were analysed and collated by Mergermarket and all responses are anonymised and presented in aggregate. The research is complemented by interviews with Reed Smith’s senior practitioners, conducted by Mergermarket.
TME: the sectors defined
The terms ‘technology’, ‘media’ and ‘entertainment’ are often loosely used and areas of overlap are significant. For clarity, the following classification scheme is used throughout this report:
Data and analytics, advertising technology including ad-targeting and programmatic buying, cloud technology and data centres, financial services technology, data security, mobile operating hardware and software, internet of things (IoT), software as a service (SaaS) including CRM, managed services, software applications development, e-commerce, social media and computer hardware/components.
- Examples: IBM, Oculus, WhatsApp, OpenTable, Viber
Media (distribution and monetisation)
Advertising agencies, content marketing/native advertising, public relations/communications, television broadcasting, radio broadcasting, music distribution, film distribution, online publishing and business information.
- Examples: Sky, Liberty Global, Yahoo
Newspapers, periodicals and books, film, television and music production, and gaming.
- Examples: AMC Networks, Time, Penguin Random House, Sony Music Entertainment