• by Joe Mandese  @mp_joemandese, January 3, 2011

Led by deals involving online and mobile media and marketing services, the value and number of transactions in media industry mergers and acquisitions soared in 2010, relative to the volume and number of deals that transpired in 2009, according to a year-end report released by investment banker Jordan Edmiston Group.

Both the number and value of media industry M&A deals rose 39% over 2009 levels, according to the report, which found that online and mobile related deals accounted for 73% of deal volume and more than half of the industry's total M&A value.

The report compiled 845 deals during 2010 with a transaction value of $43.3 billion.

So-called "strategic" buyers, corporate entities that acquired other media businesses for strategic reasons unique to their own business or industry models, led the surge, according to Jordan Edmiston's analysis, representing 86% of all transactions for the year. The investment firm said that such strategic investors have "unprecedented levels of cash on their balance sheets," which coupled with the rebounding economy prompted a spike in investment deals.

"The two largest clouds over the M&A market are the ongoing hesitancy by the banks to lend, especially on smaller transactions (those involving companies with less than $20 million EBITDA), and lingering uncertainty about the economy and its growth projections over the next six to twelve months," the report concluded, adding, "However, a recovering but still cautious and prudent M&A environment can sustain its vigor over a longer period."