2010 l 3rd Qtr l Trends Report l Media

Monday, October 04, 2010

Third Quarter Key Highlights

• The most active acquirer through Q3 2010 was United Business Media Limited with 13 acquisitions: Canon Communications, LLC, UM Paper, Astound LLC, The Route Development Group Limited, Shanghai International Children-Baby-Maternity Products Expo, CORPORATE360 International Limited, Navalshore, Sienna Interlink, PR Newswire do Brasil, DesignCon from Professional Education International, Sign China Trade Show, E Commerce Expo, Ltd. and Game Advertising Online.
• The largest transaction for Q3 2010 was the purchase of CTVglobemedia Inc. by BCE, Inc., for $1.25 billion.

Third Quarter Key Trends

• Total transaction volume in Q3 2010 increased by 8 percent over Q2 2010, from 177 to 191 transactions.
• Total transaction value in Q3 2010 increased by 80 percent over Q2 2010, from $5.2 billion to $9.4 billion. The large value of acqusitions in Q4 2009 can be explained by Comcast Corporation’s acquisition of NBC Universal.

Multiples & Value Trends

• Median multiples have shown marked growth from 2009 to the first nine months of 2010. Median EBITDA multiples rose from 7.0 to 10.5, a 50 percent increase, while median revenue multiples rose from 1.4 to 1.8, a 28 percent increase.
• The acquisition of INPUT, Inc. by Deltek Systems, Inc. for $60 million represents a 2.7 times revenue multiple and a 23.3 times EBITDA multiple.
• The acquisition of Internet Brands, Inc. by Hellman & Friedman LLC for $625 million represents a 5.5 revenue multiple and a 14.5 EBITDA multiple.

Top Ten Deals Through Q3 2010

• The top ten deals by value have shifted considerably since our half year report, with five acquisitions entering the list from Q3 2010: the acquisition of CTVglobemedia Inc. by BCE, Inc., Filmyard Holdings LLC’s purchase of Miramax Films Corporation, Hellman & Friedman LLC’s purchase of Internet Brands, Inc., The Walt Disney Company’s acquisition of Playdom, Inc., and Pearson plc’s purchase of Sistema Educacional Brasileiro’s learning systems business.
• These acquisitions, totalling $3.6 billion in value, represent 18 percent of YTD total transaction value, and 38 percent of Q3 transaction value.