New Report Analyzes M&A Activity in U.K. Indie Sector

LONDON: Between 2007 and 2009, there was £493-million worth of merger and acquisition activity involving British independents, according to Content Economics Research, with Elisabeth Murdoch’s Shine Group and BBC Worldwide as the lead players.

The report notes that £253 million in M&A transactions took place in 2007, plummeting by 70 percent to just £76 million in 2008 before rebounding to £164 million last year. “The credit-crunch brought the indie consolidation bubble to a resounding halt during 2008," said James Healey, the director of research at Content Economics Research. "But there are signs that the M&A activity is already beginning to rebound. However, with the ongoing weakness of the pound, it is European indies who are likely to be the key players, as they continue to cherry-pick U.K. production assets.”

Shine Group was the biggest spender, acquiring £74 million worth of U.K.-based indies—Firefly, Kudos and Princess Productions—while BBC Worldwide completed the most deals, acquiring stakes in four established independents. (Including deals in which BBC Worldwide invested in a start-up indie, then its deal count rises to eight.) Other key players included All3Media, DCD Media, ITV and Zodiak.

The largest single deal in the period was the £60 million takeover of Entertainment Rights, the report says.