Yang Bai, R. Wang, Rachel X. Peng, Krishna P. Jayakar
{"title":"Drivers of Mergers and Acquisitions in the Telecommunication Industry: The Differences between Blockbuster and Small M&As","authors":"Yang Bai, R. Wang, Rachel X. Peng, Krishna P. Jayakar","doi":"10.1080/14241277.2022.2055034","DOIUrl":null,"url":null,"abstract":"ABSTRACT Although many major, blockbuster mergers and acquisitions (M&As) in the telecommunications industry have attracted much attention from both the popular press and the media economic research community, small M&A deals in fact constitute the vast majority of business expansion activities in the telecommunications industry. Utilizing the data obtained from the Zephry database for over 2500 M&A cases involving U.S telecommunications companies, this study compares small and large blockbuster M&As in several aspects and analyzes whether several factors that have been shown to influence valuation of large M&As tend to affect small M&As to the same extent. According to the regression analysis, those factors, including financial market dynamics, M&A activity momentum, types of business expansion, and the involvement of foreign companies, influence the valuation of both small and large M&As. However, the direction and magnitude of the influences are quite different among small M&As.","PeriodicalId":45531,"journal":{"name":"JMM-International Journal on Media Management","volume":null,"pages":null},"PeriodicalIF":0.8000,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"JMM-International Journal on Media Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/14241277.2022.2055034","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 0
Abstract
ABSTRACT Although many major, blockbuster mergers and acquisitions (M&As) in the telecommunications industry have attracted much attention from both the popular press and the media economic research community, small M&A deals in fact constitute the vast majority of business expansion activities in the telecommunications industry. Utilizing the data obtained from the Zephry database for over 2500 M&A cases involving U.S telecommunications companies, this study compares small and large blockbuster M&As in several aspects and analyzes whether several factors that have been shown to influence valuation of large M&As tend to affect small M&As to the same extent. According to the regression analysis, those factors, including financial market dynamics, M&A activity momentum, types of business expansion, and the involvement of foreign companies, influence the valuation of both small and large M&As. However, the direction and magnitude of the influences are quite different among small M&As.