*By Adriana Berrocal, leading Valuation and Modeling partner of Deloitte Spanish Latin America
Currently, the media industry in Latin America is living a dynamic transformation, with opportunities to create value through mergers and acquisitions (M&A). As the digital disruption accelerates, changing traditional business models, investors and buyers look for the following wave of high value assets, redefining how it is monetized, scale and positions the content to grow in the long term.
Why are media companies relevant to M&A?
We have noticed that traditional media brands are transformed into digital businesses, and change happens faster than ever.
- High growth potential: consumers now spend more time on digital platforms than to traditional TV, so that the Latin American market of the streaming It has had high growth in recent years. It is expected that the penetration in the region will exceed 65% in 2026 and that the market will grow above 9% per year to double its value in 2033. It also observed great potential in advertising technology (adtech) and syndicated content.
- Cross -border expansion: International investors see Latin America as a high growth market, promoting acquisitions of digital media companies backed by risk capital (VC) and private capital (PE). The leadership of VC and PE funds in these operations in the region has doubled in the last 10 years, mainly in Mexico.
- Strategic consolidation: regional stations, telecommunications signatures, and global giants of the streaming They are actively acquiring media companies with robust content libraries to expand their base audience and generate synergies.
- Attractive valuation multiple: transactions involving content, media and animation companies, as well as subscription -based platforms, have seen multiples between 8 and 17 times EBITDA, reflecting premiums for recurrent income models. The above is above the median of the multiples for the industry that is in a range of 6 to 8 times Ebitda.
Key valuation trends impacting media companies
Estimate the value of a media company goes beyond figures – it is about understanding the behavior of the audience, digital scalability, and strategic growth in an evolving market.
The valuation of media companies is increasingly tied to permanence metrics (engagement) digital, subscriber growth, and contents monetization strategies. The companies that successfully transition from advertising dependent models to direct consumer -based platforms are achieving greater valuation multiples.
On the other hand, the industry is living an activity promoted by scalability, with platforms of streaming (Disney absorbing FUBO and fusing it with Hulu Live + TV), Telecom-Media Integrations (Millicom acquiring Colombia Telecommunications), and regional alliances (Vix de Televisa and Disney Plus) reconfiguring market dynamics. Investors are prioritizing companies with Premium content, technological infrastructure, and cross -border expansion potential.
Beyond the traditional measures regarding income or profits, the valuation models now incorporate metric centered on the audience such as the permanence of the user, retention rates, and the customization of content promoted by artificial intelligence (AI) as key indicators of the stability of future cash flows.
The way to follow: strategic positioning to grow
The Latin American media industry is experiencing a digital revolution, creating unique opportunities for investors, buyers and industry leaders. In parallel, M&A activity in the segments of streamingGames and digital advertising accelerates. Those who adapt their strategies to generate audience confidence (engagement), Local and/or scalable content, digital agility, and financial resilience, will be at the forefront of this transformation.
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
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