M&A transaction value for the media, information, marketing services and technology sectors reached $12 billion in Q1 2011, representing a 16% increase over Q1 2010. The first quarter of 2010 had seen an 83% surge in deal volume and a nearly seven time increase in transaction value over Q1 2009 levels. So, 16% growth in Q1 2011, off a large prior year base, reflects a healthy continuing M&A environment.Additionally, Marlin & Associates also circulated their deals overview for June 2011 which takes a wider view of activity and has some nicer graphs if you like that sort of thing (Marlin).
The interactive and technology markets accounted for an even greater share of activity, with the B2B and B2C Online Media & Technology, Marketing & Interactive Services, and Mobile Media & Technology sectors accounting for 75% of total deals in Q1 2011 vs. 70% in Q1 2010. The average deal size for these sectors rose as well, from $28 million in Q1 2010 to $47 million in Q1 2011.
Looking at the Top 10 Deals:
The interactive markets accounted for 7 of the 10 largest deals of the quarter, including the only multibillion dollar deal announced – eBay’s acquisition of GSI Commerce for $2.4 billion.
The other six announced interactive deals in the top 10 included:
Interestingly, two of the largest transactions of the quarter took place in the consumer publishing market, which has been a relatively quiet sector over the past few years:
- Walgreen acquired Drugstore.com, an online retailer of health and beauty products, for $409 million;
- Tencent of China acquired RiotGames, a developer of premium online games, for $400 million;
- Salesforce.com acquired Radian6, a social media monitoring company, for $326 million;
- AOL acquired Huffington Post, an online news and opinion web site, for $315 million;
- GSI Commerce acquired Fanatics, a network of sports e‐commerce sites, for $277 million; and
- Nordstrom acquired HauteLook, a private, limited‐time e‐commerce site, for $270 million.
The remaining deal in the top 10 for Q1 2011 took place in the fast‐growing healthcare market:
- Hearst Corporation’s acquisition of Lagardère’s magazine portfolio for $651 million; and,
- Apax Partners’ acquisition of Yellow Media’s Trader Corp., a producer of consumer shopper publications, for $745 million.
- inVentive Health, owned by private equity firms Thomas H. Lee and Liberty Lane Partners, acquired i3, a pharmaceutical services company, for $400 million.
Wednesday, June 08, 2011
Media M&A Reports
Investment advisory firm Jordan Edmiston reported their Q1 2011 review of M&A activity a few weeks ago (JEGI):