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Berkery Noyes Releases First Half 2010 Media Industry Merger & Acquisition Trends – Multiple Opportunities

Thursday, July 01, 2010

New York – NEW YORK -- Berkery Noyes, a leading middle market investment bank, has released its 2010 Half Year Media M&A Trends Report. This report analyzes merger and acquisition activity in the Media Industry in the first half of 2010 and compares it with activity in the four previous sixth month periods from 2008-2009.

Revenue multiples in the media industry experienced a half-to-half gain with a 14% increase in the median enterprise value/revenue multiple, from 1.5 in 2nd Half 2009 to 1.7 in 1st Half 2010.  This rise brings the median enterprise value/revenue multiple within 35% of its peak in 1st Half 2008.

The sector saw a 21% increase in volume, which, coupled with a 54% increase in financially sponsored transactions, indicates a strong return from the lows of 1st Half 2009.  Transaction volume this half has exceeded the three preceding sixth month periods.

In 1st Half 2010, online media transactions comprised 45% of total media deals, a ratio that has increased from 28% in 1st Half 2008, which follows a 20% volume increase in the Internet Media segment.

Yahoo, Inc. was the most active buyer within the Internet Media segment, with three transactions.  By purchasing Koprol, Associated Content, Inc., and Citizen Sports, Yahoo has acquired technologies to both personalize and localize its online services for users.

Two of the largest Media Industry transactions tracked by Berkery Noyes were within the regulatory and compliance segment, with the purchases of Complinet by Thomson Reuters and RiskMetrics by MSCI, Inc., for $1.38 billion.  These transactions indicate a market eager to both safeguard itself and adapt to new regulatory policy.