2008 Key Highlights
- The Media Industry’s most active buyer in 2008, based on the number (volume) of announced transactions, was Reed Elsevier, with 9 businesses purchased either directly or through a partner or affiliate.
- The segment with the largest disclosed median enterprise value multiples for 2008 was Internet Media with 3.1 times revenue and 15.8 times EBITDA (earnings before interest, tax, depreciation, and amortization).
- Financially sponsored transactions represented 91 transactions which equates to 14 percent of the total volume and $11.86 billion of value, 31 percent of the market.
2008 vs. 2007 Key Trends
- Total transaction volume in 2008 decreased by 9 percent over 2007 from 703 in 2007 to 639 in 2008.
- Total transaction value in 2008 decreased by 76 percent over 2007, from $151.23 billion in 2007 to $36.97 billion in 2008.
- The segment with largest decrease in value in 2008 over 2007 was Consumer Publishing with a 89 percent decrease from $44.30 billion in 2007 to $4.78 billion in 2008.
2006-2008 Market Overview
Out of 2147 transactions tracked by Berkery Noyes between 2006 and 2008 we determined the aggregate enterprise values paid for transactions, where the values of 767 were disclosed, to be $292.34 billion. Based on known enterprise values, using a logarithmic scale, we project values of 1380 undisclosed transactions to be $45.10 billion for a combined total of $337.43 billion over the past three years.
Transactions receiving enterprise values greater than $160 million garnered the higher median enterprise value multiple of 3.06 times revenue which is 144 percent greater than companies who received enterprise values of $10 to $20 million which captured a median enterprise value of 1.25 times revenue.
The most active buyer in the Media Industry by way of volume either purchased direct or through partner or affiliated business between 2006 and 2008 with 34 transactions was United Business Media PLC.