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Survey: Media Cross-Sector M&A on the Rise

According to a survey of 100 senior technology, media and entertainment executives in the U.S., Europe and Asia, 84% expect to see more cross-sector mergers and acquisitions in the next two years as companies converge beyond their core businesses.

That includes cable ops creating quadruple plays of TV, broadband, fixed and mobile telephony, and Internet companies like Apple and Amazon offering services and products far beyond their original businesses.

Tech companies have been the most targeted, with 48% of the cross-sector purchases in 2014 targeting tech additions.

Among the key findings are that entertainment companies are the most willing to reach beyond the core, with 33% planning to make a non-entertainment purchase and that cross-sector also increasingly means cross-border, with 67% saying their next purchase was likely to be outside their home country.

And all that merging comes with a price. According to the survey, 23% of the respondents expect increased convergence to drive creative disruption for business models in the technology and media/entertainment sectors.

The study was by Mergermarket, commissioned by law firm Reed Smith.

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.