After 18 months of economic and geopolitical uncertainty, marked by recession fear, macroeconomic stability is making a comeback. This recovery is driving a resurgence in mergers and acquisitions (M&A) activity in the media sector.
The first half of 2024 recorded a 17% year-on-year (YoY) increase in deal volumes in the sector, climbing from 60 transactions to 70, according to a new report by Collingwood, a consulting and advisory firm specializing in the media sector. This growth was driven by Europe and the UK, which recorded 42 deals in H1 2024, up 35% YoY.
Events businesses, which specializes in conferences, trade shows, awards, and one-on-one meetings, emerged as the most active area for dealmaking in Europe in 2024 with 69 deals. The UK, in particular, players a central role in this surge, the report says, hosting several prominent and private equity-backed event organizers such as Clarion Events, CloserStill Media, Hyve Group, Informa, Nineteen Group, and RX Global.
Meanwhile, information businesses, which generate revenue from high-value content subscriptions and other recurring revenue models, also drove significant M&A activity in Europe, with 62 deals recorded compared to 42 in the US.
Though Europe and the UK led the media M&A landscape in H1 2024, the report notes that the US remained a principal market, particularly in the media vertical, which encompasses publishers that generate revenue from multichannel sponsorships, content marketing, and demand- and lead-generation services.
The US led globally with 70 media-specific transactions in 2024, ahead of Europe with 46 deals. The trend is driven in part by the country’s larger marketing market size, and the activities of private equity-backed consolidators like Endeavor and BridgeTower Media. These firm are looking to acquire business-to-business (B2B) digital marketing revenue platforms, the report says.
Key deals underscored this rebound in late 2024. Notably, media company Axel Springer sold its German finance platform, Finanzen.net and associated trading platform to private equity firm Inflexion for a staggering EUR 400 million, according to media reports. The transaction was one of the largest fintech deals in Germany this year.
In December, Dow Jones acquired London-based WorldECR for an undisclosed amount. WorldECR is a provider of news, data and analysis for compliance professionals. WorldECR will integrate with Dow Jones Risk and Compliance, which reported a 16% YoY increase in Q1 2025 earnings to US$81 million.
Information businesses remain most valuable, followed by media companies
According to the Collingwood report, valuation multiples this year remain broadly consistent across business models.
In 2024, information businesses continued to be considered the most valuable, with EBITDA (earnings before interest, taxes, depreciation and amortization) multiples typically standing between 13x and 16x. These high valuations stem from their recurring business models and high margins.
Media businesses followed, with multiples typically ranging between 8x and 12x. Modern and data-led media businesses stand in the higher end of this range, while traditional publishing or ad-led businesses are seen as riskier, exhibiting thus lower multiples.
Finally, events businesses are typically valued lower, at 7x to 11x EBITDA. However, they can command higher multiples if they host scaled trade shows, have a strong recurring business (e.g., high rebooking rates for trade shows) or exhibit international expansion opportunities.
Optimism ahead for 2025
Looking ahead to the remainder of 2024 and 2025, the media M&A landscape appears promising, the Collingwood report says. With inflation easing and interest rates beginning to fall, the cost of capital is decreasing, creating favorable conditions for dealmaking. In addition, political uncertainty is expected to diminish in 2025, further stabilizing the market, the report says.
Buyers are anticipating M&A activity to continue to increase over the next 18 months, moving back towards 2022 levels. The event vertical is expected to remain a focus point, driven by its profitability and growth potential.
According to a report by A Media Operator, major players such as Informa and EasyFairs, but also PE firms are actively pursuing strategic acquisitions and looking for smaller firms for consolidation.
Informa, a prominent British publishing and exhibitions group, has already spent some US$3 billion over the past few years on assets like Industry Dive, Tagus, Ascential, and others. However, the company still has the capacity for big acquisitions, the report says.
Meanwhile, EasyFairs, a Brussels-based international events company, secured PE investment earlier this year to launch new events, broaden its geographic and sector presence, and tap strategic M&A opportunities.
Questex is another information and events company reportedly on the lookout for acquisitions, media or events, seeking deals that would likely fall into the US$50 million to US$60 million range, according to the report.
BridgeTower Media, which specializes in B2B media and events, and HW Media, publisher of HousingWire, RealTrends and Reverse Mortgage Daily, are also said to be looking at M&A opportunities.
Featured image credit: edited from freepik
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