News & Press

Think of any major merger or acquisition in the media tech industry over the last 15 years and the odds are pretty good that MediaBridge Capital Advisors will have played a leading role.

The sale of DaVinci Systems, known for its Resolve color tools  to Blackmagic Design; of wireless video innovator Teradek to The Vitec Group; of script writing software industry standard Final Draft to Cast & Crew; of mixing console icon SSL to Audiotonix, of DRM leader 5th Kind to Sohonet; and of wireless audio inventors Lectrosonics to The Freedman Group, are just a few of the dozens of successful transactions and private equity financings arranged and managed by MediaBridge.

Ethan Jacks co-founded the company in 2012 with partner John Bowen, uniting decades of experience in banking, finance and media technology.

A corporate lawyer by training, Jacks began his career in media technology in 1999 at Avid, serving as EVP Corporate Development, Chief Legal Officer and CFO. During his seven-year tenure, he led a total of 15 acquisitions of private and publicly held companies which doubled Avid’s revenue to $1 billion and raised its market cap from $400 million to $2.5 billion.

Bowen has a degree in Mechanical Engineering alongside an MBA specialized in finance and was a recognized research analyst in the formative years of digital media before becoming an industry focused investment banker, managing notable deals like the sale of On2 to Google, Audix to the Vitec Group, and Canopus to Grass Valley

Courtney Spencer joined MediaBridge as the third managing partner about 7 years ago. Spencer is an audio industry domain expert who ran Sony Pro Audio for 12 years and was SVP for D&M Holdings, overseeing brands Calrec, Allen & Heath, Denon Pro, Denon DJ, and Marantz Pro. Spencer played key roles in the sales of SSL and Sound Devices to Audiotonix as well as the recent Lectrosonics transaction, among others.

The firm also has an active group of advisors, including industry veteran and HPA Founder, Leon Silverman, who joined last year as a Senior Industry advisor and is working with them on current transactions.

As a gauge to the health of the media tech business there is no-one better to talk to than MediaBridge.

What’s the MediaBridge story?

Our slogan is ‘Global Reach, Vertical Depth’. We are a boutique investment bank, meaning we focus only on the industry vertical of media technology, on a worldwide basis. With three senior partners and deep domain expertise and industry relationships, supported by a group of seasoned professional industry advisors, together we have closed over 50 significant M&A and growth capital transactions in the media technology sector.

There are a number of investment banking firms out there, but MediaBridge is a pretty rare, if not unique, beast in the media and entertainment tech sector. Most firms would say that the market is just too niche but the reason we can make it work is our deep expertise in the sector. We know who the decision makers are, and we know the lay of the land, making us a very logical transaction partner. We also follow media technology across multiple sectors, which gives us a broad knowledge base.

Who is your prime audience?

We look to engage with senior executives in the media technology industry, from companies that are either prospective sellers or prospective buyers, as well the principals in private equity firms that invest in the media technology sector. The majority of our assignments involve representing sellers (often ‘founder-owner’ businesses) with well-known brands being acquired by larger (often publicly traded or PE-backed) buyers. For many of these owners, it is the first time they have sold a company, and their company often represents their life’s work. We are experienced in working closely with these owners to realize a compelling valuation for their company from a buyer who will be a strong and constructive steward for the business and its employees and customers going forward. Our experience helps founders navigate the complexity, stress and challenges of the M & A process.

What are the challenges facing technology and creative companies in this dynamic environment, both financial and technological?

There are a number of significant challenges. For smaller companies with a good technology base and solid business plan, the primary challenge is usually access to growth capital to fund both increasing capital and operating expenses. We often help these companies find homes with larger “platform” firms that can strengthen R&D and product development as well as provide global marketing reach that is beyond the scope of most smaller companies. Sometimes, we help our clients connect with investors such as private equity firms who understand and support the media technology industry. Examples are Sohonet (now a leader in media workflows) and iZotope, an audio software pioneer, now part of the Native Instruments consortium funded by Francisco Partners.

For larger companies, the primary challenges are often both financial and technological, driven by the imperative to advance and differentiate their offerings in today’s dynamic media technology environment. Drivers include the shifts in consumer demand from linear television to streaming, the increased prevalence of cloud/IP-based delivery systems, and the growing relevance of AI in content creation, management, and consumption.

How can companies understand how to fund their endeavors?

This is an important question. The criteria for raising capital in the media technology sector is not meaningfully different from other technology sectors. The key metrics are the size of your TAM (total addressable market), SOM (Serviceable Obtainable Market), rate of top-line and bottom-line growth, level of profit margin, strength and defensibility of a company’s intellectual property, experience level of senior management, and fit with current market priorities for investors (like effective use of AI). The demand for recurring revenue models remains strong.

What important trends in the content creation industry are you tracking?

AI is having a meaningful impact on the industry. I think it is incumbent on all media technology companies to have a coherent and nimble AI strategy. For companies that are developing credible forward-looking solutions that can become standards in the media production and postproduction space (much like Avid did 30 years ago with NLEs) the future is very bright.

What scale of business do you want to get involved in?

Companies with revenue between $10 million and $100 million. We’ve done smaller and we’ve done larger, but that’s our sweet spot.

Our clients often see the value of joining a larger firm which can help them develop and grow their product lines and distribution networks. Smaller companies often struggle to gain the market visibility needed to grow. Larger companies usually have greater ‘clout’ in the competition for strong global distribution, while leveraging R&D spend, volume purchasing power and other resources to maximize the strengths of their innovation and brands. Becoming part of a larger platform can open the door to heightened opportunities and a more meaningful market impact.

How are tariffs, real or threatened, impacting the business climate?

Even if a company is not directly impacted by tariffs on goods imported to the U.S, the climate of uncertainty can complicate potential transactions and planning. Some companies are being forced to fundamentally re-evaluate and adjust their plans. For any small and medium sized firm with tight margins and tooling that cannot be easily replaced, these are not favorable conditions. The hope is that over time, the rules will be more predictable so that business leaders can better plan their future.

Can you speak about any projects about which you are particularly excited?

We just announced the sale of wireless microphone leader Lectrosonics to the Australia-based Freedman Group, owners of the RØDE brand of leading audio products. We are also currently representing several companies with highly advanced SaaS and AI based technology solutions which we believe will become game changers in the video and audio markets.

Any warnings to new businesses or those who are planning an expansion?

Our primary advice is to use a “make/partner/buy” methodology to compare these three primary ways to maximize ROI and other strategic and operating benefits. We believe all media technology companies should have an expansion plan, because growth – especially if their ultimate goal is a successful sale transaction – is essential.