Survey: Media Deal-Making Slow in ’08

The pace of media deal-making has slowed to a crawl this year as the banking upheaval and slowdown in ad spending have held up transactions dependent on outside financing, says the Jordan, Edmiston Group investment bank, which tracks media M&A (mergers and acquisitions).
The transactions announced for the first nine months of 2008 totaled $26.7 billion, down 70 percent from $87.6 billion in the same period a year ago, Jordan, Edmiston reported.
The pace of smaller- to midsized sales, primarily of online media, interactive marketing and database information companies, has kept up with 2007, however. As a result, the total number of deals in the first nine months of the year, at 619, is almost flat with the 636 announced in the year-ago period.
Across 11 sectors tracked by Jordan, Edmiston, M&A activity in terms of dollar value declined in all but newsletter publishing, with the biggest declines in educational and professional publishing, down 98 percent; consumer magazines, down 95 percent; and newspaper publishing, down 93 percent.