Record M&A Activity Through First Half of ’07 for Media and Information Industries
The media and information industries set record marks for the number and value of deals transacted through the first half of 2007, according to The Jordan, Edmiston Group Inc. (JEGI), a New York-based investment banking firm. A record-high 399 transactions were announced totaling $76 billion through the year’s first six months, reports JEGI, which tracks deals across 11 media and information sectors. The deals’ total value exceeds value from the entire 12 months of 2006 ($60.6 billion) by 25 percent.
Led by the $1.1 billion-plus acquisition of Advanstar by Veronis Suhler Stevenson, the business-to-business magazines sector surpassed 2006’s first-half levels by 14 percent in number of deals and 13 percent in deal value. Other noteworthy second-quarter b-to-b magazine transactions included Ziff Davis Media’s sale of its Enterprise Group to Insight Venture Partners, the acquisition of Wicks Business Information by Summit Business Media and the acquisition of True North Custom Publishing by Sunshine Media.
M&A activity within the consumer magazines sector was vibrant through the first half of 2007 as well. Deal activity increased 19 percent and deal value more than tripled to more than $2.7 billion. Two deals stood out and accounted for more than half of total deal value: Primedia’s sale of its Enthusiast Media division to Source Interlink Companies ($1.2 billion) and Quadrangle Group’s purchase of Dennis Publishing ($250 million).
“There is a lot more consolidation ahead,” says Tolman Geffs, managing director, JEGI. “There isn’t such a thing as old media anymore. There’s only diversified media. Every major media company is working hard to reshape their distribution model to reach new audiences, and that’s going to take years to pan out. Plus, you have an ocean of ad dollars moving from non-digital to digital.”