Deal Tracker: PE-backed Metronet, Paramount deals drive July media, telecom M&A

Multibillion-dollar transactions with private equity participation pushed the North American media and telecom aggregate M&A value to a three-month high in July.

The sector gathered $12.40 billion in aggregate value from 88 deals during the month under review, according to S&P Global Market Intelligence data. The total value indicates a rise over $1.06 billion booked from 79 transactions in June and $1.11 billion from 104 deals in July 2023.

The top media and telecom deals announced in July involved investments from private equity firms, which continue to spend amid improvements in the M&A market.

The month's largest transaction was KKR & Co. Inc.'s joint venture agreement with T-Mobile US Inc. to acquire a 50% stake in fiber-optic services provider, Metronet Holdings LLC, for about $4.90 billion.

The investment will primarily come from T-Mobile, which will get a 50% equity stake in the joint venture and all of Metronet's residential fiber retail operations and customers while financing the venture. KKR will also invest in Metronet.

The Metronet deal, expected to close in 2025, marks KKR's latest foray into the telecom space after completing the acquisition of Telecom Italia SpA's broadband network assets in early July for an enterprise value of up to €22.00 billion.

T-Mobile is investing in Metronet as part of a continued push into the consumer fiber market. In late April, the carrier formed a joint venture with private equity firm EQT AB (publ) and the EQT Infrastructure VI fund to acquire a 50% stake in fiber-to-the-home provider, Lumos Telephone LLC, for about $950.0 million.

Citigroup Global Markets Inc. is T-Mobile's financial adviser on the deal, while KKR tapped Barclays PLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Mizuho Securities Inc. and MUFG as financial advisers. Bank Street Group LLC and TD Securities Inc. are advising Metronet.

– Browse through KKR's technology, media and telecom deal history on S&P Capital IQ Pro. – Learn more about the billion-dollar deal that drove the European media and telecom M&A activity in July. – Visit our Transactions Statistics page to run a custom screen of M&A by industry or geography .

The other private equity-backed transaction is the proposed $2.40 billion acquisition of National Amusements Inc., the controlling shareholder of media conglomerate Paramount Global, by an investor group comprising RedBird Capital Partners LLC and the family of Skydance Productions LLC founder and CEO David Ellison.

The transaction is a prelude to Paramount's two-step merger with Skydance, which values Skydance at $4.75 billion. Skydance's investor group will own all class A shares and 69% of the outstanding class B shares in the "New Paramount" after the deal's expected completion in the first half of 2025.

The merger, however, included a 45-day go-shop period, allowing Paramount's special broad committee to consider other M&A proposals.

FuboTV Inc. Executive Chairman Edgar Bronfman Jr. took advantage of this open window, submitting an offer for National Amusements and a minority shareholding in Paramount, originally for $4.3 billion before recently increasing it to $6.00 billion.

As of Aug. 26, Bronfman Jr. withdrew the offer to acquire National Amusements and a minority stake in Paramount Global, exiting the "go-shop" process and allowing the company's sale to rival bidder Skydance to proceed.

RedBird Advisors, BofA Securities Inc., Moelis & Co. LLC and The Raine Group LLC are advising Skydance and its investor group on the transaction. Paramount Global and its special board committee hired Rothschild & Co. SCA and Centerview Partners LLC as their respective financial advisers, while BDT & MSD Partners LLC is advising National Amusements.

The remaining top media or telecom deals in July had gross values of $330.0 million and below, mostly involving radio station purchases.

The T-Mobile/KKR/Metronet and Paramount Global/Skydance/RedBird deals are among the sector's largest transactions year-to-date. Silver Lake Technology Management LLC's proposed $22.26 billion acquisition of Endeavor Group Holdings Inc. remains on top of the roster year-to-date.