Media and marketing – the only growing sectors in 2012
The value of mergers and acquisitions in the media and marketing sector has increased globally in 2012 to $ 75 billion.
In 2012, in all over the world, took place in the media and marketing more mergers and acquisitions than in the previous year, the total value was higher than that in 2011, marking the third consecutive year of growth in this area – media and advertising industry, according to a report by the investment bank Jordan Edmiston Group.
The total number of transactions was 1,351, compared with 903 in 2011, while the cumulative value increased to 74.7 billion dollars from 52.2 billion dollars last year. However, the average value per transaction has decreased to $ 55.2 million from $ 57.8 million in 2011.
Among the most important transactions in 2012 are included Aegis Group acquisition by Japanese giant Dentsu advertising for the amount of $ 4.9 billion, Facebook social network agreement to buy Instagram for a billion dollar, acquisition of Salesforces Buddy Media. com for $ 745 million and AKQA acquisition by WPP, the largest communications group in the world, for the amount of 540 million dollars.
“Innovation, especially in media marketing and media SERVICING continues at a surprising ritm(…). On the demand side, investors in the corporate and financial sector have record amounts of cash at their disposal,” says Tolman Geffs Vice President Jordan Edmiston.
“Threat” of higher taxes in 2013 was another factor that caused companies to enter into such transactions this year, according to Geffs, which says that the company he leads has completed five transactions in the week before Christmas.
He believes that industry activity in mergers and acquisitions will increase in 2013, but the first months of the year will be calmer.