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New Media M&A Ends the Year with Momentum: 2009 Digital Media M&A Round-Up

|Includes:AMZN, Alphabet Inc. (GOOG), GSIC, IAC-OLD, NFLX, OPEN, SNI, XOXO, YHOO
Peachtree Media Advisors:  Digital media M&A deal value drops 10% in 2009 to $15.2 billion but ends the year with significant momentum as second-half M&A activity escalated in the mobile, e-commerce, ad technologies, and web analytics segments.
A digital media M&A market frozen by existing economic conditions showed signs of thawing in the second half of 2009 as buyers returned from the sidelines with cleaner balance sheets and a recalibrated strategic focus.  On the year, there were 755 capital raises, mergers, and acquisitions in digital media, representing a 7% increase over the 707 recorded in 2008.  Although total transaction value dropped 10% from $16.9 billion in 2008 to $15.2 billion in 2009, the second half accounted for $11.1 billion of this figure, offering a promising outlook for 2010.

While the year began with a wait-and-see approach and a focus on housecleaning and return to core-competency, the second half was propelled by a wave of strategic acquisitions, follow-on venture capital investments in portfolio companies that were able to cut costs and weather the economic storm, as well as divestitures of underperforming or non-core assets. Major strategic acquisitions included Adobe’s $1.8 billion acquisition of Omniture and Amazon’s $928 million purchase of Zappos.

Even in weak economic conditions, mobile, e-commerce, ad technologies, and web analytics all enjoyed prosperous years in 2009. Mobile asserted itself as a popular digital platform, consumers grew increasingly comfortable with online shopping, and the optimization of advertising revenue through more effective targeting of engaged users emerged as a major trend.

For a comprehensive analysis of the digital media M&A environment in 2009, download the complete report from Peachtree Media Advisors at

About Peachtree Media Advisors

Peachtree Media Advisors, Inc. is a New York-based investment bank providing M&A advisory services to growth and middle market digital media companies both in the U.S. and abroad. John Doyle, Managing Director & Founder, has been a media investment banker for more than 13 years; closed and structured more than 22 deals; and has a strong knowledgebase of financial and strategic buyers in these sectors. If you are interested in learning more about valuation, positioning, preparation or the merger and acquisition process, please visit or contact John Doyle at 212-570-1009.

Disclosure: "No positions"