Credit crunch not hampering deals

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Although the credit crisis is deepening, b-to-b media players are still eager to make deals, according to Kathleen Thomas, a managing director at media investment bank Berkery, Noyes & Co.

"I've got major transactions signed that will close in the next few weeks, and the prices are beyond expectations," Thomas said.

She added that she hasn't come across any data showing prices for b-to-b media deals have dropped in any material way because of the credit crunch.

"Pricing doesn't have to come down just because credit is more expensive," she said.

Private equity companies, which have fueled many of the larger b-to-b media transactions in the last few years, have so far this year raised $300 billion, Thomas said.

"It suggests an incomprehensible amount of money they have to put to work," she said.

"They won't get the same credit terms they were getting [earlier this year], but there's a good chance they will adjust return hurdles and, instead of getting a 25% equity return, they may get 22%."

—Matthew Schwartz

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