Media mergers

While the drama-prone mergers of struggling legacy media and Hollywood studios continue to capture headline attention, combinations among smaller digital media and advertising technology firms are picking up steam. According to Luma Partners’ quarterly review, digital media mergers during 3Q24 rose 13% quarter-on-quarter, and were up 20% year-on-year. Notably, digital media transaction with a value greater than USD 100 million rose 51% year-on-year, a trend Luma attributed to lower interest rates and the prospect for a soft economic landing. On the other hand, as smaller digital media companies struggle to gain scale, venture investment in the sector has remained weak with invested capital in the sector down 15% year-on-year.

Source: Luma Partners, October 2024