• by Joe Mandese  @mp_joemandese, October 3, 2004

Led by a surge of activity--including B-to-B magazines, consumer books, information services, newsletters, newspapers, and online media--the marketplace for media industry mergers and acquisitions surged 31 percent during the first nine months of 2004 versus the same period in 2003, according to estimates released Friday by investment banker Jordan, Edmiston Group Inc. (JEGI).

There were 311 media-related M&As during the period, totaling $15.735 billion. That's a 45 percent jump in the market value of media industry M&As that were done during the first nine months of 2003.

Effective with the third quarter of 2004, JEGI has separately begun tracking M&A deal activity for the marketing and interactive services sector, which had 56 deals valued at $3.287 billion. The sector had some of the biggest deals during the quarter, including WPP Group's $1.5 billion acquisition of Grey Global Group and America Online's $435 million purchase of Advertising.com.

January-September Media M&A Deals, Market Value

                      #/Deals   Change     Total Value*  Change  
B2B Magazines              30
+25%          $1,100    +172% 
Consumer Books             19    +111%             $56     -68% 
Consumer Magazines         25     -27%            $336     -76% 
Information Services       37
+27%          $3,136    +188% 
Directory/Reference        16      NC           $4,571     +11% 
Educational/Pro            23     +35%            $924     -34% 
Exhibits/Conferences       16
NC             $634    +559% 
Newsletters                17     +70%            $123     +51% 
Newspapers                 73     +55%          $2,229     +26% 
Online                     55
+31%          $2,617    +816%  

Media Total               311     +31%         $15,735     +45%  

Marketing Services         56      NA           $3,287      NA 

Source: Jordan, Edmiston Group Inc.'s JEGI Transaction Database, January-September 2004 versus January-September 2003. *In millions.