McClatchy, the US newspaper group, and Citadel Broadcasting, the radio station chain, have emerged as the worst performers among US companies that have made large domestic acquisitions this year, according to datacollected by Dealogic.
The figures offer an insight into the decline of traditional media companies, which have been suffering as advertisingrevenues have moved to the internet. Deals may compound the strategic challenge posed by the digital age, rather than helpcompanies address it from a stronger position, the analysis suggests.
Shares of California-based McClatchy, which in March agreed to buy rival Knight Ridder for $6.1bn (€4.6bn), fell 19 per cent between the deal announcement and December 15. With this, McClatchy, which owns the Sacramento Bee and the Miami Herald, underperformed the S&P 500 by 30 per cent.
Citadel, which in February agreed to buy most of Walt Disney's ABC radio assets for $2.7bn, fared only slightly better. The Las Vegas-based radio group's shares have declined 17 per cent since then, underperforming the index by 28 per cent.
Not all acquisitive media groups have suffered the same fate. Disney's value has risen38 per cent since January, when it agreed to buy Pixar Animation Studios in a landmark all-stock deal worth $7.4bn. Its shares have outperformed the S&P by27 per cent.
The Dealogic analysis has been run for the past three years, offering some evidence of which companies are being rewarded by investors for large deals. However, it falls short of being a full assessment of the best and worst deals. In particular, the ability of a company to implement the cost savings and earnings boost that sometimes comes from a merger cannot be determined for months after a deal closes.
In 2004, the top-performing acquirer was MGM Mirage,following the gaming company's expansion through the purchase of rival Mandalay Bay.
Last year, it was Ameritrade, vindicating its decision to acquire TD Waterhouse rather than sell to E*Trade.
This year, the top-performing acquirer was Health Care Property Investors, the California-based owner of medical office buildings, which in May agreed to buy CNL Properties for $5.2bn. Its shares have risen 38 percent since then, outperforming the index by 29 per cent.
As well as HCP and Disney, this year's top five include AT&T, whose $83bn buy of BellSouth is pending; Reynolds American, after the tobacco group's $3.5bn buy of smokeless cigarette maker Conwood; and technology company Hewlett-Packard, which in July agreed to buy Mercury Interactive.
