Merger and acquisition activity in the marketing, advertising and digital media industries remained strong during the first six months of 2008, with $19.7 billion in estimated transaction value and a total of 398 deals, according to investment bank Petsky Prunier.
While the total number of transactions was up 21% compared to last year, total transaction dollar volume was down 26% — a reflection of this year’s soft economy, as well as two significantly large deals last year (AQQuantive and DoubleClick).
The digital media segment generated the most transaction value of all the segments, with 78 transactions totalling $6.3 billion, followed by information, which had $4.8 billion in deals, driven primarily by Reed Elsevier’s acquisition of ChoicePoint—largest deal in the first half. Compared to last year, the interactive advertising segment had the highest aggregate value of all the segments, with $12.2 billion in transactions completed.
Marketing technology led in total number of transactions completed with 133, up 53% from 63 deals reported during the same period in 2007.
Although interactive advertising was the second-most-active segment during the first half, with 87 deals, both aggregate transaction volume and value were down 8% and 84%, respectively, compared to last year.
The nine most active strategic acquirers announced 35 transactions during the half. America Online, Microsoft and WPP — consistently the most active acquirers of marketing, advertising and digital media companies — continue to lead the pack with five transactions each.
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