Capital insights for media
Raising finance and exit planning
UK media businesses have spent the last year continuing to adjust to the higher cost of the capital environment. In our survey, 64% of respondents reported reducing their debt levels, up from 49% in 2024. Meanwhile, the number of businesses increasing their debt fell sharply from 24% in 2024 to just 11% in 2025.
The decrease in borrowings among UK small and medium-sized businesses reflects a trend of using free cash flow to reduce debt, which fell by around 12% between September 2022 and March 2025, according to the Bank of England (BoE).
While using free cash to reduce debt will provide media businesses with short-term cash flow headroom, it may mean investment opportunities are delayed or missed, restricting businesses’ ability to invest for growth and maximise enterprise value. With only 1% of respondents indicating they had no debt, media businesses will benefit from the reduction in interest rates from the peak of 5.25% in 2024 to 4.25% in May 2025, together with further anticipated rate cuts during 2025.
Although easing interest rates will provide some relief and improvement to cash flow headroom, longer-term interest rates are not forecast to decrease to the levels seen between 2008 and 2022. Therefore, media businesses must focus on improving operational efficiencies and optimising capital allocation to maximise enterprise value. Notably, all respondents said that they had either been approached to acquire (48%) or invest (41%) in their business, with 11% responding that they had received offers of both types.
Growth capital vs exit planning: aligning vision with value
When asked whether they were planning either a funding round or planning an exit, 28% of our 250 respondents said they are planning a funding round in the next 11 months, a decrease from 35% in our 2024 survey. When it came to exit planning, the largest proportion of business leaders (36%) said they were planning to exit in 1–2 years, slightly up from 34% last year.
Interestingly, only 1% of our respondents are not planning a funding round, highlighting the need for ongoing investment as most businesses are actively positioning themselves for growth.
In what time frame is your business considering any of the following?
Funding is easier to obtain than before, but it is still difficult for some
Compared to our 2023 and 2024 surveys, access to funding for media businesses appears to be improving. The percentage of respondents who said it was “easy to access funds in the past six months” has risen year-on-year: 33% in 2023, 49% in 2024 and 61% in 2025. This trend largely reflects the stabilisation of interest rates in 2023, followed by a decrease from a peak of 5.25% in 2024 to 4.25% in May 2025.
While access to funding appears to be improving, 31% of respondents still reported experiencing difficulties in securing funding, and 6% of respondents couldn’t access funding in the UK but were able to fund internationally.
Interest in acquiring and investing in UK media businesses is high
Have you received approaches or enquiries to acquire / invest in your business?
Even in challenging market conditions, where deal activity has slowed due to higher interest rates and macroeconomic uncertainty, all respondents reported receiving enquiries from parties interested in investing or acquiring. Specifically, 48% received enquiries from potential buyers, 41% from potential investors and 11% had enquiries from both.
Interest in investment and acquisition of UK media businesses primarily related to private equity (48%), however, there was also strong interest from individuals (41%), family offices (40%) and consortia (40%). Geographically, interested parties were primarily based in the UK (71%) and Europe (33%).
Competitiveness of the funding landscape
Debt remains a key source of funding for the media industry. Only 1% of our 250 respondents reported having no current debt, down from 10% in 2024. When asked about their debt providers, high street banks were the most common source, closely followed by challenger banks. However, similar to what we saw in 2024, it was almost an equal split between the different debt providers, acting as a reminder that the funding market is growing increasingly diverse, with media companies looking beyond the high street for their borrowing.
Where, if anywhere, does your business currently have borrowing / debt?
Reducing borrowing remains a focus
Among the 250 business leaders surveyed, 64% said they have less debt now compared to six months ago, with only 10% stating they have more. This marks a significant shift from 2024, when 49% reported less debt and 24% reported more. In comparison, our 2023 survey found that 56% had more debt at the time of answering than they did six months prior.
This mirrors a broader trend across the UK economy, where businesses are prioritising debt repayment as a primary use of their cash flow. While this can strengthen the financial position of those previously overleveraged, it also means that others are deferring investment in future growth. Interestingly, this particularly impacted London-based businesses, with 75% (a 20-percentage point increase from 55% in our 2024 survey) of respondents reporting lower levels of debt, compared to 59% across the rest of the UK.
International expansion a priority for media businesses
40% of our respondents indicated that the capital raised would be invested in international expansion and was closely followed by workforce training (38% of respondents) to help address skills gaps.
Europe remains the top choice for expansion, with 55% targeting the region — up from 39% last year. Meanwhile, interest in North America dropped to 33% from 40%, likely influenced by recent US tariffs causing uncertainty.
Our workforce findings show that media business leaders face growing challenges in recruiting the right talent. This year, 83% of respondents reported recruitment difficulties, up from 60% last year, and there was a notable rise in the planned use of freelancers/contractors. The increase in workforce training as a priority investment, from 32% last year to 38% this year, largely reflects leaders’ efforts to build skills in-house in response to recruitment challenges.
In which regions do you plan to expand?
Have you received approaches or enquiries to acquire / invest in your business?
Looking ahead: optimism amid caution
The reduction in levels of debt highlights a clear focus for media businesses to try to reduce debt rather than taking on new borrowing commitments. There are signs for optimism, with media businesses indicating access to finance is becoming easier and many having plans on the horizon for a funding round or exit within the next two years. What’s more, all but one of our respondents said they had been approached by potential investors or acquirers, showing keen interest in the sector.
