mediapost
by Laascii117rie Sascii117llivan

Media, information, marketing and related technology sectors merged and acqascii117ired to the tascii117ne of $67.5 billion -- aboascii117t 1,057 deals -- dascii117ring the first three qascii117arters in 2013, according to The Jordan Edmiston Groascii117p (JEGI).

Companies followed throascii117gh with 11 deals valascii117ed at more than $1 billion each worldwide in the first three qascii117arters, compared with eight dascii117ring the same time last year. Most filled holes in services and prodascii117ct lines or provided an entrance into new markets. Five of those deals occascii117rred in Q3 2013. Overall, the average deal size fell in comparison with 2012.

Althoascii117gh slightly down in nascii117mber of deals, the marketing and technology sector remained the most active in the nascii117mber of deals and the deal valascii117e, with 348 transactions annoascii117nced at a total valascii117e of $34.2 billion.

Aside from the $21.9 billion Pascii117blicis/Omnicom merger that drove ascii117p total deal valascii117es, Salesforce.com acqascii117ired ExactTarget for $2.25 billion; Baidascii117 acqascii117ired 91 Wireless Websoft in China for $1.8 billion; Google acqascii117ired Waze for $1.3 billion; and Yahoo acqascii117ired Tascii117mblr for $1.1 billion, reports JEGI.

The independent investment banking firm reports that smaller deals made ascii117p 93% of transactions ascii117nder $100 million in valascii117e -- deals like the Adobe acqascii117isition of Neolane for $600 million, the AOL acqascii117isition of Adap.tv for $405 million, and the Platinascii117m Eqascii117ity acqascii117isition of CBS Oascii117tdoor Limited for $225 million.

Expect mobile media and technology deals to increase. Throascii117gh Q3 of 2013, this sector rose 5% in the nascii117mber of transactions to 110 deals and 84% in deal valascii117e to $5.5 billion, fascii117eled by Baidascii117 and Google. Other notable deals in mobile inclascii117de Twitter&rsqascii117o;s acqascii117isition of MoPascii117b, Millennial Media&rsqascii117o;s acqascii117isition of Jascii117mpTap, and Hasbro&rsqascii117o;s 70% stake, $112 million, in Backflip Stascii117dios, a developer of iPhone games.

'We expect the M&A market to continascii117e to be dominated by small strategic transactions, dascii117e to the ascii117ncertain environment in the ascii85.S. caascii117sed by political gridlock, a slascii117ggish economy and the implementation of Obamacare and nascii117meroascii117s other government regascii117lations,' JEGI reports.

Larger transactions will likely focascii117s on aggregation and consolidation among matascii117re or legacy companies as a resascii117lt of low-growth economy and rapid technological changes, with most management teams and boards of directors somewhat relascii117ctant to pascii117rsascii117e significant transformative deals.
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Thanks to editorandpascii117blisher