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Sector convergence in media and entertainment sees divestment intent remain at high levels
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Divestment appetite among media and entertainment (M&E) companies remains at near-record highs, according to the EY Media & Entertainment Global Corporate Divestment Study. The study reveals that 80% of global sector respondents plan to divest in the next two years – up from 33% in 2017 and down slightly from 87% in 2018 – as they seek funds to invest in digital capabilities and to focus on core assets.
The study indicates that 75% of companies anticipate more large-scale transformational divestments in the next 12 months. With the line between technology, M&E and telecommunications companies increasingly blurring, 68% say convergence is most likely to drive divestment decisions in the next year, while 58% have reinvested proceeds from their last divestment in new products, markets and geographies.
Will Fisher, EY Global Media & Entertainment Transactions Leader, says:
“Technology-driven convergence, the increasing importance of exclusive content and data, shifting consumer behavior and competition from online players are driving M&E companies to continuously evaluate their growth strategies. In this climate, a strong appetite for divestment prevails, with companies looking to pivot more quickly in pursuit of new growth opportunities. The focus should now be around how to operationalize divestments to reach bigger audiences and build scale to compete with growing content production and data costs.”
The study findings are supported by the 19th EY Global Capital Confidence Barometer (CCB), which reveals that more than two-thirds (71%) of M&E companies are now reviewing and reshaping their portfolios at least every six months, as they continue to actively dispose of underinvested assets, businesses that are no longer core to the portfolio, and those best left in the hands of another owner.
And with 78% of Media & Entertainment Global Corporate Divestment Study respondents expecting the number of technology-driven divestments to rise in the next 12 months (up from 75% last year), the drive to fund new technology investments continues to be a key divestment trigger across the sector.
Delays continue to hamper media and entertainment divestment prospects
While divestment intentions are strong across the sector, the study indicates that companies remain slow in initiating the divestment process. Sixty-five percent of respondents say they have previously held onto assets for too long when they should have divested, while 58% state that their last divestment was delayed because they didn’t prepare adequately for associated regulatory requirements.
Fisher says: “As M&E companies continue to review their portfolios more frequently, they will need to ensure that they are also taking steps to prevent delays in divestment decisions, as well as potential value erosion. Preparation is a key differentiator here, and the most successful companies will be those that commit to early planning, while accommodating regulatory requirements, tax risk and private equity diligence where relevant.”
The study further indicates that 90% of M&E companies prioritized value over speed in their last divestment, up from 77% in 2018. Only 50% of M&E sellers describe their last divestment as opportunistic, down from 65% in 2018. The study highlights that, with unplanned divestments being less likely to achieve a sale price and valuation that meets expectations, the imperative for sellers to build a credible value story with supporting data is now more critical than ever.
SOURCE EY
BEIJING, Dec. 19, 2024 /PRNewswire/ — The 2024 Beijing Forum on Swift Response to Public Complaints opened in the Chinese capital on Wednesday, where leading global academics and representatives share their insights and explore strategies for modernizing urban governance.
With the theme of “Modernizing for People-Centered Urban Governance,” the two-day event from Wednesday to Thursday has gathered more than 700 participants, including domestic and international guests, representatives from China’s Hong Kong Special Administrative Region (SAR), Macao SAR and the Taiwan region, scholars from universities and representatives of grassroots workers.
Beijing is a city with a profound history and rich cultural heritage, as well as a vibrant, modern international metropolis. Covering an area of over 16,000 square kilometers, it has a permanent population of 21.858 million.
In response to urban governance challenges, Beijing launched the swift response to public complaints reform in 2019, providing rapid responses and efficient handling of citizens’ concerns through the 12345 Citizen Service Hotline.
Over the past five years, the city has handled 150 million complaints from citizens, achieving a resolution rate of 96.5 percent and a satisfaction rate of 96.9 percent.
The attendees have been invited to visit the Beijing 12345 Citizen Hotline Service Center on the sideline of the forum, to gain firsthand insights into Beijing’s exploration and innovation in the governance of mega-cities.
Sponsored by the Chinese Academy of Social Sciences, China Media Group, Communist Party of China Beijing Municipal Committee and the People’s Government of Beijing Municipality, the forum has a main forum and six parallel sessions.
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Agreement reached on acquisition of Sonoco’s TFP business as TOPPAN Group accelerates expansion of sustainable packaging business in Americas
TOKYO, Dec. 19, 2024 /PRNewswire/ — TOPPAN Holdings Inc. (TYO: 7911) (TOPPAN Holdings) has entered into an agreement with Sonoco Products Company (NYSE: SON) (Sonoco), a global leader in high-value sustainable packaging, to acquire Sonoco’s Thermoformed & Flexible Packaging (TFP) business for approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.
This acquisition is highly complementary, combining the robust sales network, customer base, and solution development capabilities of Sonoco’s TFP business in North and South America with the technical expertise and manufacturing capabilities of TOPPAN Group’s global packaging business.
Sonoco’s TFP is a leading thermoformed and flexible packaging business serving a wide range of customers in food, retail, and medical verticals. TFP provides a variety of complex packaging to value-added categories including snacks, condiments, healthcare, prepared meals, fresh products, coffee, and pet food. On a pro forma standalone basis, TFP had revenue of approximately $1.3 billion in 2023.
“We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the TOPPAN Group. In order to accelerate our strategy to become a global leader in sustainable packaging solutions, we will employ the complementary strengths of both parties to drive growth, solve customers’ needs and create significant value for our shareholders,” said Hideharu Maro, Representative Director, President & CEO of TOPPAN Holdings. “This is an essential milestone in the TOPPAN Group’s global strategy to scale the sustainable packaging business.”
This transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.
The TOPPAN Group’s Strategy
The TOPPAN Group aims to be a leading solution provider addressing global issues. Under the current medium-term-strategy, the TOPPAN Group has been transforming its portfolio, and one of its key strategies is to drive sustainable packaging solutions at global scale.
The vision of the TOPPAN Group’s packaging business is “Change the World through Packaging Innovation,” and its mission is to “Foster a society focused on well-being and sustainability, while safeguarding our planet for future generations, through the continuous development of innovative packaging solutions that explore cutting-edge materials and technologies.”
The TOPPAN Group has been driving innovation in the development of sustainable packaging solutions by establishing a global supply chain from film manufacturing to packaging manufacturing and optimizing cost to meet brand owners’ needs locally and globally.
Advisors
Houlihan Lokey is acting as lead financial advisor and Morrison & Foerster LLP is acting as legal advisor to TOPPAN. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is also acting as financial advisor to TOPPAN.
Goldman Sachs & Co. LLC is acting as lead financial advisor and Freshfields LLP is acting as legal advisor to Sonoco. RBC Capital Markets, LLC is also acting as financial advisor to Sonoco.
About the TOPPAN Group
Established in Tokyo in 1900, the TOPPAN Group is a leading and diversified global provider committed to delivering sustainable, integrated solutions in fields including printing, communications, security, packaging, décor materials, electronics, and digital transformation. The TOPPAN Group’s global team of more than 50,000 employees offers optimal solutions enabled by industry-leading expertise and technologies to address the diverse challenges of every business sector and society and contribute to the achievement of shared sustainability goals.
https://www.holdings.toppan.com/en/
https://www.linkedin.com/company/toppan/
About Sonoco’s TFP
Sonoco’s TFP business has a strong customer base and manufacturing footprint in North America and South America with approximately 4,500 employees in 22 manufacturing plants, over 700 patents, and design capability across 10 countries.
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WASHINGTON, Dec. 19, 2024 /PRNewswire/ — The global law firm Jones Day announces that the 37 lawyers listed below will be admitted to the Firm’s partnership effective January 1, 2025.
“This class of new partners once again reflects Jones Day’s ability to provide our valued clients the guidance and legal solutions for their most complex business challenges across the globe,” said Gregory M. Shumaker, Managing Partner of Jones Day.
The full announcement is also available on Jones Day’s website. The list follows:
- Rebecca Wernicke Anthony, Business & Tort Litigation, Dallas
- Matthew Barrett, Corporate, London
- Joseph C. Barry, Financial Markets, Cleveland
- Irina K. Bleustein, Securities Litigation & SEC Enforcement, Washington
- Mathis Bredimus, Corporate, London
- Kelsey S. Bryan, Business & Tort Litigation, Los Angeles
- Emily W. Cai, Corporate, New York
- Diana L. Calla, Business & Tort Litigation, San Francisco
- Andrew J. Clopton, Issues & Appeals, Detroit
- Arturo de la Parra, Financial Markets, Mexico City
- Adrien Descoutures, Corporate, Paris
- Preslava Dilkova, Government Regulation, Brussels
- Amanda L. Dollinger, Financial Markets, New York
- Anna A. Dwyer, Real Estate, Chicago
- Justin P. Farra, Corporate, Columbus
- Matthew J. Gherlein, Financial Markets, Cleveland
- Fabio Maria Guidi, Financial Markets, Milan
- Ryan Harmanis, Business & Tort Litigation, Columbus
- Jared P. Hasson, Corporate, Cleveland
- Andrew D. Iammarino, Financial Markets, Cleveland
- Kurt A. Johnson, Detroit, Issues & Appeals
- Andrew J. Junker, Business & Tort Litigation, Dallas
- Thomas S. Koglman, Intellectual Property, Cleveland
- Laura E. Koman, Health Care & Life Sciences, Washington
- Marta Lahuerta Escolano, Government Regulation, Paris
- Justin D. Martin, Labor & Employment, Miami
- Alexander V. Maugeri, Government Regulation, New York
- Justin W. McKithen, Financial Markets, Atlanta
- Karl S. Moussalli, Global Disputes, London
- Victoria Cuneo Powell, Business & Tort Litigation, Atlanta
- Gabrielle E. Pritsker, Business & Tort Litigation, Washington
- Kaitlinn P. Sliter, Corporate, Chicago
- Bijan Tavakoli, Government Regulation, Frankfurt
- Jessica Tierney, Health Care & Life Sciences, Washington
- Collin L. Waring, Real Estate, Dallas
- Ann-Marie Woods, Labor & Employment, Chicago
- Jason Z. Zhou, Business & Tort Litigation, Chicago
Jones Day is a global law firm with more than 2,400 lawyers in 40 offices across five continents. The Firm is distinguished by: a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
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