1996 Saw Record Level In Communications Industry Transactions, According to Latest Veronis, Suhler & Associates Transactions Report.NEW YORK--(BUSINESS WIRE)--April 1, 1997--Paced by heavy action in TV/broadcast & cable segments, transactions reach high of $113 billion; Easing of ownership regulations sparks Sparks, city (1990 pop. 53,367), Washoe co., W Nev., just E of Reno; inc. 1905. The Southern Pacific RR was the major employer until the dieselization of railroad engines forced the closing (1957) of the railroad shops there. TV/Radio buying spree; business information segment heats up. The value of publicly announced financial transactions in the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. surged to a record $113 billion in 1996, an increase of more than $31 billion over 1995, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 1997 Communications Industry Transactions Report released by the investment banking firm Veronis, Suhler & Associates Inc. (VS&A). The amount, which included mergers & acquisitions, public offerings, private placements, redemptions and other corporate financings, was the first time reported industry transactions surpassed $100 billion. Although the number of individual media transactions actually dropped in 1996 from the year before (524 vs. 878 in 1995), the growing valuations and multiples, along with market liquidity and sheer scale of transaction size more than compensated for the difference. There were 15 reported deals of $1 billion or more, capped by Disney's $19 billion acquisition of Capital Cities/ABC, and U S West's acquisition of Continental Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. for $10.8 billion (see attached chart for ranking of largest transactions.) And lest lest conj. For fear that: tiptoed lest the guard should hear her; anxious lest he become ill. [Middle English, from Old English there be any doubt about which segments are driving the industry -- 71% of the total value of transactions in 1996 -- $80 billion -- came from broadcasting and subscription video services. "Continuing deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the industry by Congress, consolidation in a number of sectors, tremendous market liquidity, and the rising tide Noun 1. rising tide - the occurrence of incoming water (between a low tide and the following high tide); "a tide in the affairs of men which, taken at the flood, leads on to fortune" -Shakespeare flood tide, flood of U.S. equity values have brought many previously unavailable media properties to market, with no shortage of buyers and sellers for well-positioned franchises in broadcasting, print, information services See Information Systems. , interactive media and other segments" explained John Suhler, founding partner of Veronis, Suhler. He noted that 84% of the total transaction values for 1996 were the result of merger & acquisition activity. The VS&A Communications Industry Transactions Report is the most comprehensive year-to-year analysis of industry transactions; it is produced by Veronis, Suhler & Associates, the industry's leading investment bank. Established in 1981 by John Suhler and John Veronis, the firm has completed 356 transactions totaling $19.8 billion. Among recent assignments, VS&A represented Time Warner Time Warner Inc. (NYSE: TWX), formerly known as AOL Time Warner, is the world's largest media and entertainment conglomerate headquartered in New York City, with major operations in film, television, publishing, Internet service and telecommunications. in the sale of Little, Brown Professional Publishing to Wolters, Kluwer, as well as local business publisher CityMedia, Inc., acquired last year by American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of City Business Journals, a unit of Advance Publications. VS&A Communications Partners II, L.P, a $330 million private equity fund affiliated with Veronis, Suhler, has recently formed Broadcasting Partners Holdings, with two acquisitions comprised of substantial equity interest in Spring Broadcasting and Pilot Communications. The fund also acquired Canon Communications. The latest VS&A Transactions Report confirms that television and cable transactions have been pacing the industry -- 10 of the 15 billion-dollar- plus transactions of 1996 were drawn from these two broadcast segments. Interactive digital media and book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. were two other segments that showed strong activity, whereas filmed entertainment, magazine publishing and advertising agencies all showed substantial declines in transactions from previous years tracked. The VS&A Transactions Report also highlights two hyperactive hy·per·ac·tive adj. 1. Highly or excessively active, as a gland. 2. Having behavior characterized by constant overactivity. 3. Afflicted with attention deficit disorder. areas -- interactive digital media and business information services. The latter segment -- defined by a variety of data-driven businesses providing information related to market research, health care, financial news, credit rating, legal research, management systems and other markets -- has become highly transaction-driven of late, reflected in a nearly threefold rise in transactions from 1995. Given the large number of players in this niche, the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market has played an especially strong role in fueling its advance. "The importance of the Transactions Report becomes clear in light of the enormous segmentation and consolidation that have overtaken the communications industry in the past few years," John Veronis said. "From special interest publishing and home shopping networks “HSN” redirects here. For other uses, see HSN (disambiguation). The Home Shopping Network (HSN) is a mostly 24-hour shopping network that is seen on cable, satellite, and some terrestrial channels in the United States. to packaged multimedia software and alternative newspapers, the landscape for media financings is not only more diverse than ever but it is also increasingly intertwined in ways that may not have seemed possible even at the start of the decade. We are pleased that our Transactions Report has become the industry scorecard of record for keeping pace with the growing volume of public financings." -0-
Aggregate Value of Total Financial Transactions
by Publicly Reporting Communications Companies (in Millions)
TV/Radio Subscription Bus. Info. Interactive Book Newspaper
Video Services Media Publishing Publishing
1996(a) $47,563.7 $32,581.6 $14,218.5 $5,380.8 $1,951.3 $2,199.5
1995 15,318.3 30,716.4 6,542.3 3,014.3 1,546.0 4,454.6
Recorded Filmed Magazine Advertising Misc. Industry
Music Entertainment Publishing Agencies Commun. Totals
1996(a) $405.2 $ 5,865.8 $740.7 $119.6 $2,310.1 $113,336.8
1995 330.1 17,453.0 890.6 767.7 585.2 81,618.4
Aggregate Value of Mergers & Acquisitions (in millions) M&A represented
84% of 1996 transactions
TV/Radio Subscription Bus. Info. Interactive Book Newspaper
Video Services Media Publishing Publishing
1996* $44,533.5 $27,015.9 $13,194.7 $4,458.1 $1,826.3 $1,602.1
1995 11,487.5 21,841.1 5,171.9 1,749.3 669.1 2,316.7
Recorded Filmed Magazine Advertising Misc. Industry
Music Entertainment Publishing Agencies Commun. Totals
1996* $405.2 $ 362.9 $240.4 $ 44.8 $2,030.9 $95,714.8
1995 330.1 8,178.5 611.8 252.2 439.5 53,147.6
(a) Indicates partial year; includes announced transactions
(b) Call if you would like industry analysis on any specific segment of the
Transactions Report
CONTACT: Allan Ripp/(212) 721-7468 or Jeff Barge/(212) 721-8060 Grant Draper drap·er n. Chiefly British A dealer in cloth or clothing and dry goods. [Middle English, weaver or seller of cloth, from Old French drapier, from drap, cloth; see , VS&A/(212)756-0490 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-752-9600 or 800-221-2462; Boston 617-236-4266 or |
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