Tight credit markets and the lousy economy pushed the value of media deals in the first quarter of ’09 to their lowest level in more than 10 years, according to media investment bank The Jordan, Edmiston Group.
JEG, which has been tracking deal making over that time period, recorded $1.3 billion in deal value in the first quarter, a 90.5 percent drop versus the year-ago quarter. The number of announced deals, at 129, also declined by 7 percent versus the fourth quarter of 2008 and by 35.8 percent compared with the year-ago quarter.
Of the announced deals, roughly two-thirds (80 deals) occurred in the sectors JEG calls Marketing & Interactive Services and Online Media & Technology, where technology and digital companies are still strong acquisition targets.
The third-most active sector was consumer magazines, with 17 deals recorded in Q1 including Sandow Media’s acquisition of Western Interiors and Design and Indigo Acquisition’s purchase of Garden & Gun.