Business

PwC: Q4 a Record for M&E Deals (MESA)

The fourth quarter of 2016 was a record for deals in the media, entertainment and communications sector, according to a report from PricewaterhouseCoopers (PwC), with total deal volume up 34% from the third quarter, and total revenue for deals hitting $125.9 billion. PwC saw seven “mega-deals” for the quarter, or deals worth more than a billion, with AT&T’s pending acquisition of Time Warner topping them all at $85.4 billion.

“The announcement sent shockwaves through the sector, grabbing the attention of every news organization, regulator, analyst, and even the president-elect. Estimated at $85 billion, it’s not just the price tag that grabs headlines, it’s the transformation and innovation it promises to bring to the sector,” PwC wrote in its report.

“The marriage between a once traditional telecommunications company and a content creator/curator of this size, the deal exemplifies the themes that have circled this sector for years: the pursuit of quality content, the search for complimentary distribution channels and the investment in technology and innovation.”

The merger of CenturyLink and Level 3 Communications (worth $25.1 billion) was also a major shift, combining CenturyLink’s enterprise customer base with the benefits of Level 3’s global reach, putting the combined company’s footprint in 60 countries, giving it the ability to offer enhanced offerings in business network services, with more broadband infrastructure and better broadband speed for both small businesses and consumers.