What Credit Crunch? Content Industry M&A Strong in Q1
Despite the credit crunch, M&A activity in the content space was slightly ahead of last year's record pace in Q1. That's according to the Q1 M&A recap from the Jordan Edmiston Group.
JEGI recorded 202 deals worth $13.4 billion in the quarter, nearly 5% higher than the $12.8 billion value of the 207 deals in the first quarter of 2007.
The largest deals took place in the Database Information Services segment, where Reed Elsevier's (LDN: REL) $4 billion acquisition of Choicepoint and Hellman & Friedman's $2 billion acqusition of Getty Images led the way.
AOL's (NYSE:TWX) $850 million acquisition of social network Bebo helped drive 77% growth in the online segment.
There were drop-offs in a few segments which had been hot in 2007, including b2b magazines, consumer magazines and newspapers. That's little surprise as many of the big names traded hands last year and the major acquirers are busy absorbing their recent acquisitions, or, in the case of newspapers, licking their wounds.
Despite the tumultuous markets, I see continued strength in mid-market M&A for the rest of the year. Strategic buyers, particularly those in the UK and Europe which can leverage strong currencies, will continue to buy businesses at what they perceive to be bargain-basement prices.
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