Private-equity buyers target media sector.

Investors Chronicle, January, 2006

The media sector could be the target of a raft of private-equity buyouts in the new year amid reports that cable company NTL is being stalked. Private-equity groups Apax Partners Worldwide and Kohlberg Kravis Roberts are said to be looking at buying NTL, which is merging with rival Telewest Global and trying to buy Richard Branson's Virgin Mobile.

Takeovers like these are likely as the media sector is mired in structural issues, with many conglomerates failing to generate growth, while also losing audiences and advertisers to the internet. Media executives are attempting to meet the new challenge by buying up dot-coms in a bid to boost their online presence and give a fillip to their share price. But additional difficulties are being caused by a cyclical...

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