Interesting report issued by Ad Media Partners, analyzing a survey of senior executives within leading media (traditional media and digital media) and marketing services (advertising, marketing services and digital marketing) businesses on prospects for industry mergers and acquisitions for 2010.
(Note: Blogger seems to have a problem with ampersands, which I don't recall encountering before, thus, I am abbreviating mergers & acquisitions with M'nA.)
Four out of five respondents (83% in marketing services and 80% in media) anticipate that M'nA by
strategic buyers will be up in 2010. This is a dramatic turnaround from 2009 results when less than one-third of those surveyed anticipated activity would increase. Executives overall weren't so certain about
financial buyers, with half saying they would be active, and approximately 40% saying financial buyers would be flat.
As to be expected, the top two drivers for M'nA were:
- Attractive Buying Opportunities 52%
- Strategic Refocusing 49%
Of course the success of any merger is predicated on the buyer achieving its goals to leverage assets and achieve some level of economies of scale. This will put greater pressure on IT departments to ensure that systems are aligned if not consolidated. Should be a great opportunity for DAM and other vendors who can help leverage content from various silos -- with minimal disruption to productivity.
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