Mergers & acquisitions : an entertainment and media conglomerate
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/22082 |
Resumo: | The entertainment and media landscape is considered as a rapidly changing and highly growing industry. Due to increasing M&A activity and changing consumer demand for experiences and interactions with high-quality content, entertainment and media companies are advised to innovate their products and user experience with focus on digitalization. This thesis considers an acquisition of Time Warner by 21st Century Fox, two of the biggest companies in the entertainment and media industry. First of all, common practices of M&A deals with focus on valuation methods and value generation through a combination of two companies are revised and clarified. In addition, the entertainment industry and the companies are analyzed by focusing on trends, competition and historical financial performance. After this, the economic reasoning of the acquisition of Time Warner by Fox is determined. Both companies are valued independently and as a combined firm. As a result, the combination of these companies seems to be the perfect strategic and economic fit. The deal would create a leading position in the film and TV production and would reduce the upcoming competition from online and streaming companies. Moreover, both firms would not lose its negotiation power with cable companies concerning carriage fees of their content. The estimated value of synergies is $26,78bn, undermining the high potential of this entertainment and media conglomerate. Fox would have to pay around $100 per share constituting a premium of 16,1% with regard to Time Warner’s estimated fair share price of $86,15. |
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Mergers & acquisitions : an entertainment and media conglomerateDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe entertainment and media landscape is considered as a rapidly changing and highly growing industry. Due to increasing M&A activity and changing consumer demand for experiences and interactions with high-quality content, entertainment and media companies are advised to innovate their products and user experience with focus on digitalization. This thesis considers an acquisition of Time Warner by 21st Century Fox, two of the biggest companies in the entertainment and media industry. First of all, common practices of M&A deals with focus on valuation methods and value generation through a combination of two companies are revised and clarified. In addition, the entertainment industry and the companies are analyzed by focusing on trends, competition and historical financial performance. After this, the economic reasoning of the acquisition of Time Warner by Fox is determined. Both companies are valued independently and as a combined firm. As a result, the combination of these companies seems to be the perfect strategic and economic fit. The deal would create a leading position in the film and TV production and would reduce the upcoming competition from online and streaming companies. Moreover, both firms would not lose its negotiation power with cable companies concerning carriage fees of their content. The estimated value of synergies is $26,78bn, undermining the high potential of this entertainment and media conglomerate. Fox would have to pay around $100 per share constituting a premium of 16,1% with regard to Time Warner’s estimated fair share price of $86,15.Assunção, António Luís Traça Borges deVeritati - Repositório Institucional da Universidade Católica PortuguesaPlumen, Kevin Jürgen2017-04-27T07:44:06Z2015-10-2720152015-10-27T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/22082TID:201171163enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:28:22Zoai:repositorio.ucp.pt:10400.14/22082Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:18:25.512460Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Mergers & acquisitions : an entertainment and media conglomerate |
title |
Mergers & acquisitions : an entertainment and media conglomerate |
spellingShingle |
Mergers & acquisitions : an entertainment and media conglomerate Plumen, Kevin Jürgen Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Mergers & acquisitions : an entertainment and media conglomerate |
title_full |
Mergers & acquisitions : an entertainment and media conglomerate |
title_fullStr |
Mergers & acquisitions : an entertainment and media conglomerate |
title_full_unstemmed |
Mergers & acquisitions : an entertainment and media conglomerate |
title_sort |
Mergers & acquisitions : an entertainment and media conglomerate |
author |
Plumen, Kevin Jürgen |
author_facet |
Plumen, Kevin Jürgen |
author_role |
author |
dc.contributor.none.fl_str_mv |
Assunção, António Luís Traça Borges de Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Plumen, Kevin Jürgen |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The entertainment and media landscape is considered as a rapidly changing and highly growing industry. Due to increasing M&A activity and changing consumer demand for experiences and interactions with high-quality content, entertainment and media companies are advised to innovate their products and user experience with focus on digitalization. This thesis considers an acquisition of Time Warner by 21st Century Fox, two of the biggest companies in the entertainment and media industry. First of all, common practices of M&A deals with focus on valuation methods and value generation through a combination of two companies are revised and clarified. In addition, the entertainment industry and the companies are analyzed by focusing on trends, competition and historical financial performance. After this, the economic reasoning of the acquisition of Time Warner by Fox is determined. Both companies are valued independently and as a combined firm. As a result, the combination of these companies seems to be the perfect strategic and economic fit. The deal would create a leading position in the film and TV production and would reduce the upcoming competition from online and streaming companies. Moreover, both firms would not lose its negotiation power with cable companies concerning carriage fees of their content. The estimated value of synergies is $26,78bn, undermining the high potential of this entertainment and media conglomerate. Fox would have to pay around $100 per share constituting a premium of 16,1% with regard to Time Warner’s estimated fair share price of $86,15. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-10-27 2015 2015-10-27T00:00:00Z 2017-04-27T07:44:06Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/22082 TID:201171163 |
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http://hdl.handle.net/10400.14/22082 |
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TID:201171163 |
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eng |
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eng |
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openAccess |
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application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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