Media, Marketing Deals Hold Steady

Media and marketing deal making for the first half of 2015 were relatively constant versus the previous six-month period-- with volume and median costs dropping.

Deal volume grew 3% to 863 from 841 versus for the last six months of 2014, according to media investment banker Berkery Noyes. But total volume fell 31% to $36.48 billion from $52.72 billion. This excludes the proposed mega-merger of Time Warner Cable and Charter Communications that was announced recently.

Eleven of the top 10 highest value deals in second half 2014 reached the $1 billion threshold, as opposed to five in first half 2015. Deal volume and transaction were also lower than first six months of 2014 -- $44.3 billion and 870, respectively.

Verizon Communications’ acquisition of AOL for $4.13 billion was the biggest valued deal in the first half of year. Internet media deals rose the most of any category, up 25% to 259 transactions from 208.

The average cost -- based on revenue and cash flow -- declined from the previous six-month period. The median revenue multiple declined to 1.9 times revenues from 2.1 times revenue in the second half of 2014. Cash flow -- earnings before interest taxes depreciation and amortization (EBITDA)-- sank to 8.7 times cash flow from 12.0 times.



Marketing deals -- the biggest category -- grew 4% to just under 300 deals during the first six months of the year with advertising company Dentsu the most active acquirer with nine transactions.

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