The number of mergers and acquisitions climbed dramatically in the media and marketing sectors last year, suggesting a consolidation trend in the wake of the financial crisis. Berkery Noyes, the investment bank, reported that the value of M&A activity in these categories reached $54 billion in 2011, compared with totals of $38 billion in 2010 and $54 billion in 2009.
Evan Klein, Managing Director at Berkery Noyes, said:
The media and marketing industry is continuing its strong recovery from a slow fourth quarter in 2010. Marketing services and digital media companies have all benefited from a large increase in internet advertising revenues in 2011, and look to be promising segments for driving M&A activity.
By sector, the marketing industry saw the biggest increase in activity, with 428 transactions conducted during 2011, forming a 29% increase from the 332 in 2010. Within the marketing sector, the internet media category has seen the greatest amount of deals in each of the last three years, with around 430 deals in 2011, up from around 350 in 2010.
In volume terms, 88% of deals in this period were strategic moves by industry players, and 12% involved private equity, venture capital or other investment firms. These figures hit 80% and 20% respectively in value terms.
Source: Media & Marketing Industry M&A Trend Report is available at the Berkery Noyes website.
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