The outlook for mergers and acquisitions in the media and entertainment sector is looking stronger as CEOs surveyed by consultant EY (formerly Ernst & Young) see convergence and digital technology advances driving additional deals.
According to EY’s 15th biannual Media & Entertainment Capital Confidence Barometer (CCB), about 31% of CEOs surveyed picked sector convergence as the greatest disruptor to media and entertainment businesses.
Digital remains at the heart of corporate strategy in the sector. Nearly a third (31%) of executives saw the impact of digital technology on the business model at the top of the boardroom agenda over the past six months.
Those two factors are also forcing executives to seek out cross-sector deals and making deeper dives into adjacent or unrelated industries. According to the report, access to new technologies is the strongest driver toward such transactions, according to 67% of executives.