News
News
1/4/2006
01:33 PM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

Internet Moves Drive M&A Among Media Companies

Mergers and acquisitions hit a five-year high last year.

Mergers and acquisitions within the media and information industries reached the highest level in five years in 2005, driven primarily by the need to invest in digital technology as the Internet grew in importance, an investment bank says.

Last year saw 525 deals valued at $56 billion across 11 sectors tracked by The Jordan Edmiston Group Inc. Among the media companies that acquired fast-growing online content and delivery channels to offset traditional business lost to the Internet were Gannett, The New York Times, Dow Jones and News Corp.

Also helping boost the M&A market were attractive lending multiples, strong corporate balance sheets and historically low interest rates, the New York investment bank said.

The rise in M&A activity was led by a number of sectors that saw significant gains in the number and value of deals. Those sectors included business-to-business magazines, 10 percent and 42 percent, respectively; directory and reference publishing, 26 percent and 246 percent; exhibition and conferences, 44 percent and 128 percent; marketing and interactive services, 30 percent and 42 percent; newspaper publishing, 7 percent and 72 percent; and online media, 38 percent and 101 percent.

The number of deals among consumer magazines was down 8 percent, but their value shot up 472 percent.

The value of M&A deals last year surpassed the 2000 level of $49.3 billion. The market began its rebound in 2004 when $29.9 billion in deals were completed, Jordan Edmiston said in a report released Tuesday.

Comment  | 
Print  | 
More Insights
The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.