NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Leading digital media mergers and acquisitions advisory firm, FE International, released its highly anticipated 2024 Digital Media M&A Report. The comprehensive study provides key insights into the dynamic landscape of the digital media sector, highlighting significant trends, market shifts, and strategic considerations for entrepreneurs and investors.
The prospect of the Federal Reserve halting interest rate hikes, coupled with the potential for rate cuts in 2024, hinges on the trajectory of economic growth and inflation trends. Now, economists suggest that the economy could continue to surpass expectations, fueled by pent-up demand and potential growth in certain sectors. Digital Media is a relatively broad industry with multiple sub-categories. Specifically at FE International, we are seeing increased activity in the ed-tech, ad-tech, and digital agency industries.
October 2023 witnessed a remarkable surge in M&A activity in the United States, with publicly traded companies announcing deals exceeding $139 billion—the highest volume recorded in a single month since June 2019. This surge, indicative of newfound confidence in economic recovery, sets the stage for a robust M&A environment in 2024.
The 2024 Digital Media M&A Report examines the factors driving this growth, exploring the strategic imperatives and considerations of corporate leaders navigating a landscape marked by optimism and economic uncertainty.
Key Takeaways from the 2024 Digital Media M&A Report:
Generative AI's Impact: The rise of generative AI is reshaping the digital media space, ushering in a fundamental restructuring in the industry’s value chain. The consolidation of dominance among major players is expected to drive significant M&A activity, ushering in a transformative era with novel functionalities and potential disruptions across news outlets, textbook publishers, and software development agencies.
Deal Value Surge: Digital Media M&A deal value is surging, marking an impressive increase of over 56% in the second half of 2023 compared to 2022.
The Growing Ed-Tech Space: The robust demand for Ed-Tech businesses, driven by factors such as a growing labor force participation, increased demand for skilled workers, and the rising integration of technology in education, continues to fuel M&A activity in the sector. The Global U.S. Education Market, valued at USD 1.04 Trillion in 2022, is projected to reach USD 1.45 Trillion by 2030, exhibiting a CAGR of 4.20% over the forecast period.
Strategic Shifts and Opportunities in 2024: Instead of pursuing scale through M&A, companies are opting for concentrated investments, prioritizing innovation, efficiency, and fortification of organizational structures. This shift is not only a response to industry-specific challenges but also indicative of a broader trend where businesses adapt to new market expectations.
“As near-record levels of capital stand ready for deployment, we anticipate a resurgence in market activity in the coming months,” said Thomas Smale, CEO of FE International. “At FE International, we remain committed to providing strategic insights and guidance as we navigate this dynamic environment, empowering our clients to seize opportunities in the evolving M&A landscape."
Rooted in robust, data-driven insights, the analysis provided in FE International's 2024 Digital Media M&A Report offers a clear portrayal of the trends, shifts, and opportunities shaping the Digital Media market.
The 2024 Digital Media Mid-Year Report is now available for download: click here.
About FE International:
Founded in 2010, FE is known for its extensive network of pre-qualified international investors. Its team includes experts in exit planning, valuation, accounting, legal and more.
FE serves clients worldwide with headquarters in New York and regional offices in Miami, San Francisco, London, Mumbai, and Warsaw. It was named one of The Americas' Fastest Growing Companies in 2023, 2022, 2021 and 2020 by The Financial Times and is also a five-time Inc. 5000 company. For more information, visit www.feinternational.com.
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