M&A Activity Slumps Through Three Quarters
With nine months in the books, the year's merger and acquisition activity has been a "tale of two markets," according to The Jordan Edmiston Group's (JEGI) Adam Gross, vice president of marketing. Overall, M&A activity across the media and information industries has slowed through the year's first three quarters, though smaller transactions in growing sectors have remained on pace with 2007.
Total M&A transaction value is off by nearly 70 percent in 2008 compared to the prior year, according to JEGI's report, "Third Quarter 2008 M&A Overview." 2008 has seen 619 total deals valued at about $26.7 billion, down from 636 deals valued at $87.6 billion through this time last year.
The consumer magazine category showed a steep decline in both number of deals (28.3 percent fewer deals than last year) and value (a 95-percent decline). Deals among business-to-business magazines fell by 36 percent while their value was down 87 percent.
Growth sectors that have avoided the overall slump include Online Media & Technology, which has accounted for 218 deals so far (just behind last year's 232) and Marketing & Interactive Services, which saw a 13-percent increase in deals from 181 to 205. Together, the sectors have combined for 423 of the 619 total deals tracked by JEGI and more than 50 percent of their value.