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BREAKING NEWS & VIEWS

Happy New Media Year: M&A Up 9% in 2011


Tuesday, January 3, 2012

The hot sectors of marketing services and tech helped drive mergers and acquisitions in the media sector up 9% in 2011 compared to 2010, representing a deal value of $47 billion, reports investment bank Jordan Edmiston Group Inc. (JEGI). There were 896 recorded transactions in the year, compared to 881 the previous year. Digital media and services were the key drivers of that growth, representing 71% of M&A activity. Nevertheless, consumer magazines saw 23% more deals last year, representing a 15% rise in deal value. Also strong among traditional media was the conference and expo area, which was up 39% in activity and 249% in deal value).



Last year’s leader in growth, the database and information services sector, fell back behind marketing and interactive services in growth this past year. The intense interest in diversifying publisher services to include digital and marketing helped bring the number of deals in the sector up to 291 (up 17%) and value to $15 billion (up 33%). Oracle was very active in the space, with large deals to acquire RightNow Technologies and Endeca. Adobe bought Efficient Frontier and Auditude. And Yahoo! acquired interCLICK.

B2B online media and technology deals were among the leaders in actual value, up 132% to nearly $6 billion for the year. The segment saw some of the largest deals of the year, including the acquisition of domain service GoDaddy by KKR, Silver Lake and TCV for $2.4 billion in Q1. For traditional b2b media, however, there was virtually no significant M&A activity, JEGI reports. The number of deals in b2b (14) was down 62%, and their value of $50 million was down 91% from the year prior.

In b2c media, again online media and tech drove M&A, if at a slightly lower level than 2010. The segment saw 214 deals totaling $7.6 billion in value, down 7% and 10% respectively. The 23% increase in deals for consumer magazines for $3.2 billion in value was even in value for the previous year. Notable deals for the year included Axel Springer acquiring WAZ Media Group, JC Penney investing in Martha Stewart Omnimedia, and Hearst acquiring Hachette China.

The events marketplace saw significant activity, up 39% in number of deals and a 249% increase in deal value. Providence Equity Partners acquired George Little Management in Q3, and United business Media made two strategic buys: Index Furniture Private and Online Marketing Summit.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com


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