Q1 2013 Media & Marketing Industry Trends Report

Q1 2013 volume in the Media & Marketing Industry experienced a slight uptick since Q4 2012, totaling 390 transactions. However, volume in Q1 2013 was down 13 percent relative to Q1 2012. Financial sponsors represented eight percent of volume but 28 percent of value in Q1 2013.

Aggregate value fell 68 percent during the past quarter, from $25.6 billion to $8.2 billion. Eight of the top ten largest acquisitions in 2012 occurred in either the third or fourth quarters, which contributed to this steep quarterly value decrease. When compared to Q1 2012, deal value in Q1 2013 decreased 30 percent.

Volume in the B2B Publishing segment increased ten percent between Q4 2012 and Q1 2013. The largest transaction in the B2B segment and the overall industry year-to-date was CVC Capital Partners’ $1.5 billion acquisition of Cerved Group SpA, a corporate information database. Deal flow in the Consumer Publishing segment, after rising 67 percent in Q4 2012, decreased 13 percent in Q1 2013. One of the largest Consumer Publishing transactions was NC2 Media’s $62 million acquisition of Lonely Planet, a travel guide publisher.

Regarding the industry’s Marketing segment, volume rose eight percent over the last three months, from 108 to 117 transactions. Internet Media volume underwent a six percent decline, matching its Q1 2012 level.

M&A within Entertainment Content increased 13 percent in Q1 2013, the segment’s third consecutive quarterly improvement. The largest deal in the Entertainment segment in Q1 2013 was Warner Music Group’s acquisition of Parlophone Label Group for $767 million. On a similar note, one of the highest value transactions in the Exhibitions, Conferences, and Seminars segment was entertainment related. SFX Entertainment acquired ID&T, a producer of dance music events, for $102 million.