Assessment of the strategic winners and losers from media and technology convergence

Aim
  • To develop scenarios for the convergence of media and telecoms and evaluate the impact on the value of four major UK Plcs, Vodafone, BSkyB, ITV and BT

Scope
  • One of the world’s largest asset managers was trying to sharpen its understanding of the impact of technological change and convergence on major UK companies
  • Cairneagle developed a set of scenarios of how convergence might play out and then mapped each company’s future prospects against each scenario
  • Company valuation models were obtained form the asset managers sell-side analysts, modified and adapted, and then the impact on each company of each scenario was quantified
  • In order to do this work it required both deep and broad understanding of the  technology and media industries and the ability to make consistent and high quality judgements and estimations of likely

Outcome
  • We developed a coherent and powerful point of view on where the impact of convergence was most likely to be felt and the client’s investment stance and holdings were modified to reflect the findings of the work