PRINT THIS PAGE 2006 Media and information industries M&A overview
14/03/2007. Source:The Jordan, Edmiston Group, Inc..
Led by spreading consolidation in the Marketing & Interactive Services and Online Media sectors and aggressive competition for acquisitions by private equity buyers, M&A deal activity flourished in 2006 across the 11 media and information sectors tracked by The Jordan, Edmiston Group, Inc., a New York-based investment banking firm that specialises in media and information. Deal Activity +18% and Deal Value +12% in 2006
The year finished with 637 transactions valued at more than $60 billion, breaking the previous highs achieved in 2005 by 18% in deal activity and 12% in total deal value. The interactive market continues to be driven by strong growth in online advertising, which increased 33% in the third quarter of 2006 over 2005 levels to a record $4.2 billion, according the Interactive Advertising Bureau (IAB).
The significant rise in M&A deal activity and value was led by the following key sectors: business-to-business magazines (value up 140%); consumer magazines (activity up 32%); educational and professional publishing (value up 244%); exhibitions and conferences (activity up 53%); marketing and interactive services (activity up 42%; value up 69%); newspaper publishing (value up 144%); and online media (activity up 55%).
Media and Information Industries M&A Transaction Value, 2000-2006
The M&A rebound began in 2004 and exploded in 2005, as transaction value for the media and information industries reached $54 billion for the year. This record-high was only to be exceeded in 2006, as transaction value for the media and information industries, across the 11 sectors covered by JEGI, surpassed $60 billion.
JEGI is a provider of investment banking services for the media and information industries. JEGI has undertaken the sale of numerous entrepreneurial businesses and significant disposition engagements for a wide range of major media and information companies, including CNET, Dow Jones, Hearst, Jupitermedia, Pearson, Reed Elsevier, Thomson Corporation, United Business Media and VNU. JEGI has also advised on the sale of assets for a number of leading private equity funds, including Abry Partners, Frontenac Company, Housatonic Partners, Pfingsten Partners, Seaport Capital, Warburg Pincus and Wicks Group of Companies.
|
