• by Wayne Friedman , October 9, 2014

Media merger and acquisition activity dropped modestly for the third quarter of 2014 versus the same time period a year ago -- and from the second quarter of 2014.

Berkery Noyes, a New York media investment banker, says there were 366 deals in the third quarter of 2014 -- down from 413 in the second quarter and 452 in the first quarter. Third-quarter 2013 deals were also at 452 transactions.

Still, total dollar volume in the third quarter was up 8% to $24.6 billion over the second quarter’s $22.7 billion. That's higher than the $22.3 billion in the third quarter of 2013.

Deals based on cash flow -- earnings before interest, taxes, depreciation and amortization (EBITDA) -- dropped by 12% to 8.5 times cash flow in the first nine months of the year from 9.7 times cash flow in 2013.

The average revenue multiple for these acquisitions for the first nine months of the year remained equal to the same time period in 2013 -- two times revenue. Total deal volume for the first three quarters was at $72.5 billion.

The biggest deal in the third quarter of 2014 was Alliance Data Systems’ acquisition of Conversant for $2.3 billion.

Three major transactions of this year represent 13% of all transaction value in the first three quarters of this year -- $9.5 billion. This includes a $4.2 billion purchase of Advantage Sales and Marketing by Leonard Green & Partners and CVC Capital Partners; Zillow’s $2.9 billion deal for Trulia; and Berkshire Partners’ $2.5 billion acquisition for Catalina.

The biggest media M&A category -- marketing -- witnessed dollar volume down 7% in third-quarter 2014, with transaction activity up 8%.