M&A Market Rebounds: B2B, Online, Databases Fuel New Round Of Deals

Led by a surge of activity involving B-to-B magazines, database services, newsletters, and online properties, the marketplace of media industry mergers and acquisitions heated up during the first half of 2004 vs. the same period in 2003, according to a tracking study released Thursday by investment banker Jordan Edmiston Group Inc.

The number of media M&A deals soared 26 percent to 173 during the first half, while the market value of those transactions rose 102 percent to $7.681 billion. The most active sectors were information database services and newsletter publishers, which each saw the number of M&A deals double over the first half of 2004.

The biggest shift in terms of transactional value occurred among online properties, which soared 1,045% to $2.024 billion as a result of some major deals, such as Ask Jeeves' $343 million acquisition of Interactive Search Holdings, and Thomson Corp.'s $385 million purchase of Trade Web. Other high-value M&A sectors included B2B magazines (+821 percent), database services (+327 percent), and newsletters (+149 percent).

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The least volatile media deals market was consumer publishing--especially consumer magazines, which saw only 10 properties change hands during the first half, a decrease of 33 percent from the first half of 2003.

First Half Media M&A Deals, Market Value



1st Half M&A Deals 1st Half M&A Value*
2004 Change 2004 Change
B2B Magazines 16 +60% $1,055 +821%
Consumer Books 7 +40% $45 -64%
Consumer Magazines 10 -33% $120 -64%
Information Services 30 +114% $2,118 +327%
Directory/Reference 11 -8% $146 +75%
Educational/Pro 13 +44% $212 +61%
Exhibits/Conferences 11 -8% $116 +28%
Newsletters 12 +100% $122 +149%
Newspapers 33 +3% $1,724 +1%
Online 30 +36% $2,024 +1,045%

Total 173 +26% $7,681 +102%

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