January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite In the face of continued evolution of media consumption due to technology advances, we expected the pace of M&A announcements to ramp in 2017. In the end, activity was more muted than initially anticipated. but there were still a handful of notable deals announced during the year at reasonably healthy multiples. The chart below provides a sampling of the M&A that transpired. [Select 2017 (Announced) Media M&A Transactions Industry Date Announced Date Closed/ Anticipated Buyer Target Assets Purchase Peke Estimated Pr Multiple Combreed 243 slaloms .n 23 of lop 25 markets Rack, Broadcaumg 2/2/17 11/17/17 Crte,corn CBS Radio (46 market:total `54or. EV `8.4. 42 ciaions reach,r6 - 42% of the IrS and Seller. '8.6s VW IS) 1V &oadcaslog 5/8/17 1(118 Smdar Intx,ne - 313/4 of Food Network - 56 6On Buser. - 7s C17/181 Magat.nes 11/26/17 1018 Meredith Time AB Time assets int, SI. People. InStsle. etc. - 52 ebn Seller ILTMI Move Theaters 12/5/17 1018 Petal 2nd Largest odUaltor Si the VS mill 561 theatres & 7.315 screens - 53 6bn Seller r18) Buyer '7 3. l'181 Son Covent sopsn's DassoNt ton Hawn We expect 2018 to usher in increased M&A activity on the heels of welcoming capital markets conditions, reasonable leverage levels (generally speaking), and loosened government regulation. For TV, the completion of the spectrum auction and Sinclair & Tribune getting across the finish line should re-start deal-making. For radio, we could see pockets of assets come up for sale as 2 of the largest groups restructure. And newspapers are likely to continue to seek out economies of scale amidst an ongoing decline in print ad revenues. As alluded to above, from a balance sheet perspective, many Media / Business Services companies are in a much better place to navigate potential choppy waters today than they were heading into and during the last recess