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34 I Southeast Europe bne October 2017
Romania’s media sector in turmoil
Clare Nuttall and Carmen Simion in Bucharest
Romania’s media sector is in a bad way. Several of Romania’s top media moguls have been sent
to jail, are under investigation or have simply fled the country in recent years. Already overcrowded and financially shaky, the sector is ripe for consolida- tion, but changing ownership is not likely to solve the problem of politically polarised reporting or the lack of media pluralism in the country.
A recent rise in advertising revenues, thanks to Romania’s robust GDP growth and ongoing consumer boom, has provided a temporary respite for media that have been ground down by years
of financial difficulties. But while some outlets were able to return to profit- ability in the last couple of years, overall much of the sector remains distressed. And this is likely to continue as part of the global shift away from traditional
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publishing and the rise of online content that has put the squeeze on advertising revenues worldwide.
Observers of the Romanian media scene anticipate a wave of M&A in the sec-
tor. PwC forecasts consolidation in the media, along with a number of other sectors in Romania such as financial ser- vices, healthcare and FMCG. “The media sector in particular could experience
trusts with activities in radio and televi- sion, written press, online. Given the multitude of TV stations, newspapers, radios, we can expect further consoli- dation/acquisitions in the Romanian market, to access new subsections or to strengthen their presence in a particular media segment.” This was echoed by a Bucharest-based corporate lawyer in an off the record conversation with bne. He described media as a “distressed sector”,
“Romania is heavily over-invested in media, especially TV stations”
further consolidation in the near future,” PwC Romania partner, transactions, Cor- nelia Bumbacea told bne IntelliNews.
“There are currently around 10 media
pointing out that, “Romania is heavily over-invested in media, especially TV stations, many of which are political vehicles and are in deep trouble. A lot are unprofitable and permanently on the