October 28, 2016 – Solganick & Co. has issued its latest digital media industry M&A update for Q3 2016. The following are the highlights of the report, which can be also downloaded here: Digital Media M&A Update Q3 2016
The digital media sector took home the largest share of the overall Marketing, Media, and Technology industry with $23.1 billion (43.8% of MMT sectors).
- Q3 value increased to $23.1 billion from 21.7 billion in Q2 (if you exclude the Microsoft-Linkedin and Supercell-Tencent merger).
- Deal volume decreased marginally from to 322 to 318 in Q3 2016.
- Strategic acquirers accounted for 93% of deal volume in Q3 2016.
- eCommerce made up the largest portion of the Digital Media sector with 50% of deal value and 37% of deal volume.
- US M&A activity remained strong despite concerns over government anti-trust policies, the presidential election, and a possible interest rate hike.
- In Q3 2016, deal value totaled $384.8 billion, compared to $327.9 billion in Q2 2016 (17.4% increase).
- YTD 2016, U.S. M&A deal value dropped 29.6% from $1.4 trillion 2015 Q1-Q3 to $962.4 billion YTD.
- Overall, the US captured 43.8% of the global market share, compared to 24.1% for Europe and 22% for Asia.
- The US technology industry experienced a slight decrease in M&A activity. In Q1-Q3 2016, technology deal value dropped to $141.1 billion compared to $150.3 billion in 2015 YTD (8.8% decrease). However, the digital media sector increased!
To read the complete report, go here: Digital Media M&A Update Q3 2016
Source: PitchBook, MergerMarket
Solganick & Co. is an independent investment bank and M&A advisory firm to growing and established technology and digital media companies. You can find out more information here: solganick.com