Mobile Internet: Record Deals Of $47 Billion M&A And $14B Invested

 |  Includes: IYW, TECL, VGT, XLK
by: Tim Merel

In the last 12 months Digi-Capital tracked record mobile internet deals of more than $47B M&A and $14B investments, as detailed in our Mobile Internet Investment Review.

Sellers' market

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Removing the blockbuster Facebook (NASDAQ:FB)/WhatsApp deal from the M&A record reveals a sellers' market across sectors. Of the remaining $28B, $13.8B was in Q2 2014, continuing the long-term growth from $1.8B in Q2 2013.

Massive investment

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Continuing the theme of big numbers, mobile internet has seen >$14B invested in the last 12 months. Hot sectors such as travel/transport, utilities and mCommerce have lead the charge, but even smaller sectors are seeing hundreds of millions of dollars. The $5.5B invested in Q2 2014 also was continuing a long-term growth trend from $1.4B in Q2 2013.

Hidden opportunities

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Digi-Capital's mobile internet Investment Quadrant positions sectors based on investment potential and consolidation potential (see methodology here). It doesn't position specific sectors or companies as good or bad, but helps to identify pockets of opportunity:

Major opportunities (relatively lower investor competition, relatively more remaining exit opportunities):

  • mCommerce
  • App Store/distribution
  • Business apps
  • Education apps
  • Productivity apps*
  • Wearables

Hidden Gems (relatively lower investor competition, relatively fewer remaining exit opportunities):

  • Enterprise mobility/B2B apps
  • Mobile advertising/marketing
  • Mobile games
  • Messaging apps
  • Navigation apps

Exit opportunities (relatively higher investor competition, relatively more remaining exit opportunities):

  • Lifestyle apps
  • Medical apps*
  • News apps*
  • Social networking apps
  • Travel/transport apps

Selective opportunities (relatively higher investor competition, relatively fewer remaining exit opportunities):

  • Entertainment apps
  • Finance apps
  • Health and fitness apps
  • Photo and video apps
  • Utilities apps

(* Sector doesn't appear on the chart as M&A value for the last 12 months wasn't available.)

Some folks might see this as controversial, particularly if their company's sector or investments don't appear in "major opportunities." As a numerical analysis it isn't saying any sector, company or investment is good or bad, and there could be great successes from any sector.