M&A Up 14 Percent in First Half of 2011 from Last Half of 2010

Mergers & acquisitions in the media and marketing services sector may be up in volume by 14 percent, but the real jump occurred in transaction value, up 67 percent from $17.3 billion in the last half of 2010 to $28.9 billion in the first half of 2011, according to investment banking firm Berkery Noyes.

Internet media is leading the pack in terms of volume, up 37 percent in first half 2011 from 182 to 250 transactions. The marketing services sector, a new addition to Berkery Noyes’ report, heavily contributes to the volume and number of transactions. Publicis, who acquired Rosetta Marketing Group in 2011’s first half for $575 million, had 27 transactions over the last two and a half years.

According to The Jordan, Edminston Group, the marketing & interactive services’ transaction value is up 81 percent to $5.74 billion in the first half of 2011. Publishers like Penton and Dowden Health Media (who purchased EyeTraffic Media and Priority Integrated Marketing, respectively) contributed to this jump.

Other notable transactions include Hearst’s acquisition of Lagerdere’s international press and magazine business, valued at $893 million. West Australian Newspapers Limited made the biggest deal in first half 2011, purchasing Seven Media Group, an Australian media company, for $4.145 billion.

TPG Capital’s acquisition of Primedia, Inc. for $524 million rounded out the top ten notable transactions for the first half of 2011.

Media companies are shedding fear as the economy recovers, reflected by the value of purchases (which includes more conventional media purchases like Warner Music Group, as well as bwin Interactive Entertainment AG, an online game developer) in this sector: 5 transactions valued over a billion took place in the first half of 2011, while only 4 transactions for over a billion occurred during the entirety of 2010.

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