Moore Kingston Smith comments on the acquisition of All3Media by Redbird IMI
TV production powerhouse All3Media was recently acquired by RedBird IMI. Here, Head of Media Corporate Finance at Moore Kingston Smith, Paul Winterflood looks at the deal and what it means for the sector.
The acquisition of All3Media is a welcome sign for UK producers that there is still significant appetite for premium new shows and ongoing existing series from both UK and US investors. Despite the pessimistic backdrop of an industry struggling from a drop off in advertising revenues, broadcaster cost cutting drives and the fallout of the writers’ and actors’ strikes, the sale should be a reassuring indication of the continued strength of the UK’s entertainment market and the value of the IP held within its production companies.
Investment companies are clearly viewing any stagnation within the industry as a short term set back, hedging their bets that the global audiences’ insatiable appetite for new content can drive growth, eventually kicking the advertising commissioning cycle back into gear. We expect to see further significant acquisition activity in the space over the coming years.