Europe's media sector is tipped for consolidation now that trade buyers are expected to take over from private-equity firms in driving M&A. Few tears will be shed over the news that certain financial investors are struggling to fund acquisitions and exit their investments on time with the kind of returns to which they have grown accustomed. Private equity is controversial, most notably when it takes over a publicly traded company and cuts staffing levels with the aim of boosting efficiency and enabling an exit with a healthy premium. Some argue that financial investors simply have the courage to make much-needed streamlining decisions, but union leaders and politicians have described private-equity operators as "amoral asset strippers" and "locusts". One cable executive said, "Given the current market, it will be a while before the sharks get back into the water."
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