• by Erik Sass  @eriksass1, October 5, 2011

The total value of merger and acquisition activity in the media industry increased by 10% to $35.3 billion in the first three quarters of 2011 compared to the same period last year, according to the Jordan Edmiston Group, an investment bank and financial consultancy that tracks media deals.

The total number of deals was actually down slightly, from 698 in the first three quarters of 2010 to 694 in the first three quarters of 2011. The increase in dollar value was therefore attributable to growth in average deal size.

Popular areas of M&A activity included interactive, marketing services and technology markets. In terms of categories, B2B and B2C online media and technology, marketing and interactive services, and mobile media and technology accounted for 73% of the volume of total deals, and 63% of their value.

JEG attributed much of the M&A activity to corporations that are strategically investing in growth and new revenue streams, partly to offset competitive pressure and rapid shifts in more traditional markets. However, private equity is also increasingly playing a role, with private equity firms taking part in a number of deals worth over $100 million.

Some of the bigger deals that closed in the third quarter of 2011 included Bloomberg's acquisition of the Bureau of National Affairs, a provider of legal, tax, regulatory and environmental information services, for $992 million; Web.com's acquisition of Network Solutions for $755 million, including assumed liabilities; Reed Elsevier's acquisition of Accuity Holdings, an online subscription-based data provider for financial services companies for $532 million; and Pearson's acquisition of Connections Education, an operator of online schools in 21 states, from Apollo Management for $400 million.

Further down the totem pole, ValueClick acquired Dotomi, a provider of online retargeting advertising for retailers, for $295 million; eBay acquired Zong, which enables users to buy virtual goods inside social networks and online games using their cell phones, for $240 million. Glam Media acquired Ning, a social media platform, for $150 million in stock.

Previous quarters saw major transactions including Hearst's acquisition of Lagardere titles previously published by Hachette Filipacchi for $651 million, and TPG Capital's acquisition of Primedia, a publisher of home and apartment guides, for $525 million.