Report: Media M&A Up In 2010 But Smaller Deals Dominated
Database & Information has highest deal value; Exhibitions the lowest.
Both the number and value of mergers and acquisitions in the media, information, marketing services and technology sectors jumped 39 percent in 2010, with 845 transactions valued at $43.3 billion, according to a new report from The Jordan, Edmiston Group.
Online media, marketing services and mobile media dominated the 10 categories tracked by JEGI, accounting for 73 percent of the deal volume and more than half of overall deal size (JEGI says the average deal size for these three categories was $38 million, compared to $87 million for the balance of the other seven other sectors it tracked).
While there were significantly more deals in several media sectors, they were on the smaller side. JEGI reports 37 deals in B-to-B Media valued at $534 million (that’s 85 percent more transactions than in 2009, but down another 85 percent from $3.5 billion in deal value in 2009). UBM’s $287 million acquisition of Canon Communications was the largest deal of the year in the category.
However, B-to-B Online Media & Technology saw 59 deals (up 11 percent from 2009) valued at $2.5 billion (up 88 percent from last year).
Consumer Magazines saw 26 deals worth $214 million, compared to 41 deals worth $213 million in 2009 (there were no consumer transactions over $100 million last year). B-to-C Online Media & Technology generated 230 deals worth $8.5 billion, up from 139 deals valued at $7 billion in 2009.
Deals in Database & Information Services jumped 49 percent to 70 worth $12.4 billion, including TPG Capital’s acquisition of MacDonald, Dettwiler & Associate’s property data unit for $850 million.
The Marketing & Interactive Services sector posted the most deals in 2010 at 254, worth $11.3 billion. Newspapers posted the fewest deals with 10 worth $1.5 billion. Exhibitions & Conferences had the lowest combined deal value at just $129 million.
2010 Media, Information, Marketing Services & Related Technology M&A Activity
B2B Online Media & Technology: 59 deals worth $2.5 billion
B2C Online Media & Technology: 230 deals worth $8.5 billion
Business-to-Business Media: 37 deals worth $534 million
Consumer Magazines: 26 deals worth $214
Database & Information Services: 70 deals worth $12.3 billion
Education Information, Technology & Training: 59 deals worth $4.9 billion
Exhibitions & Conferences: 23 deals worth $129 million
Marketing & Interactive Services: 254 deals worth $11.3 billion
Mobile Media/Technology: 77 deals worth $1.4 billion
Newspaper Publishing: 10 deals worth $1.4 billion
Total: 845 deals worth $43.3 billion
Source: JEGI Transaction Database