Online Media M&A Volume Up 55%

The number of mergers and acquisitions involving online media companies last year shot to 181 from 117 in 2005, but fewer blockbusters meant a total dollar value 26.3% less than the prior year at $8.9 billion, according to data compiled by The Jordan Edmiston Group.

While 2005 saw a spate of Internet deals valued at more than $1 billion including InterActiveCorp's purchase of Ask Jeeves and Yahoo's acquisition of Chinese portal Alibaba, only one reached that level last year: Google's $1.6 billion acquisition of YouTube.

Among other major online transactions in 2006 were NBC Universal's $600 million purchase of iVillage, The E.W Scripps Company's $366 million deal for U.K-based comparison shopping site uSwitch.com, and MTV's $200 million pick-up of Atom Entertainment.

Deals in the marketing and interactive services category--which includes Google's $102 million acquisition of dMarc Broadcasting, and VeriSign's $273 million purchase of wireless services provider Jamba--jumped 42.4% to 141 transactions, and by 68.9% in dollar value to $17.5 billion.

The overall media and information industries M&A market last year included 637 deals totaling more than $60 billion, an 18% gain in deal activity and a 12% increase in dollar value over previous record highs in 2005.

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