It’s been a very interesting year, to say the least. When I wrote to you 12 months ago, I said: “The M&A market looks strong for the first half of 2007, given the continued eagerness of debt sources to lend at reasonable rates and healthy multiples, the vast overhang of private equity capital, and the ongoing evolution of media business models, as content and technology continue to converge.” In retrospect, my prediction was quite prescient, as M&A activity carried very strongly through the first half of 2007, and then slowed somewhat for large cap transactions, following the credit crunch. The middle market for M&A maintained a healthy pace, however, especially in the online media and marketing services sectors.

Overall, 2007 was a banner year for M&A in the media and information industries, as 838 transactions were completed, valued at nearly $110 billion. This record-setting pace was driven by the pursuit of growth through new media assets, a retooling of portfolios by the large strategic companies, and continued investment in the sectors by private equity firms. Online media and marketing services companies dominated the action, with over 550 transactions completed for a total value of more than $43 billion. JEGI was in the heart of the action in 2007, having completed 22 M&A transactions for a mix of leading B2B and B2C media companies.

Looking ahead to 2008, we’re likely to see continued investment in U.S. assets by international companies, given the anemic value of the dollar in the world markets these days. According to Thomson Financial, none of the 10 largest merger-related bids in the U.S. over the past four months had a U.S. acquirer. The vast overhang of private equity capital (estimated at $300 billion) will continue to churn the M&A market, as will the continued efforts by major strategic media companies to revamp their product portfolios. The impact of these trends, confirmed by JEGI’s healthy pipeline of deal flow, portends continued brisk M&A activity in the media and information industries in 2008.

In short, despite the pundits and naysayers who feel otherwise, we’re in agreement with Michael Chen, President & CEO of GE Commercial Finance – Media, Communications & Entertainment group, who is “cautiously optimistic” for 2008, contingent on several key economic factors. Speaking at JEGI’s 4th Annual Private Equity and Lenders Forum in late November, he noted the reset of sub-prime mortgage rates as one such factor, anticipating the government/private financial institution coalition announcement the next day to freeze interest rates on certain “troubled” sub-prime home loans. Read more of Mr. Chen’s remarks in this Client Briefing’s Capital Markets article.

We were delighted with the success of Outsell’s Signature Event, which was co-produced by JEGI and held in mid-November at the Sanctuary at Kiawah Island, South Carolina. Titled A View of the Future for CEOs and Managing Directors in Media & Information, the invitation-only event attracted nearly 200 top executives from across the vibrant and rapidly changing media and information industries. Led by an extraordinary group of keynote speakers, including David Calhoun, CEO, Nielsen; David Rosenblatt, CEO, DoubleClick; George Colony, CEO, Forrester Research; and many others, the event provided industry leaders with an unparalleled opportunity to reflect and revitalize, and discuss the most important issues affecting the industry and its organizations. More information regarding the event and speakers’ views on the industry are included in this edition of the Client Briefing.

Finally, I did want to mention that JEGI will once again be the Gold Sponsor of the SIIA Information Industry Summit, which will be held January 30-31 at Cipriani on 42nd Street in New York City. The association has put together an excellent line-up of speakers and panelists, and it expects a record turn-out. For more information, visit the Web site at: www.siia.net/iis/2008/.

We hope you enjoy this Client Briefing, and please feel free to contact our Managing Directors or me with any questions regarding the marketplace and our services. We hope that your Holidays were full of good cheer, and here’s to a wonderful New Year.


Best Regards,



Wilma H. Jordan


P.S. Each year, in place of sending holiday cards, JEGI makes a significant contribution, on behalf of our many clients and friends, to the Doe Fund, a New York based non-profit organization. The Doe Fund’s mission is to help formerly homeless and disadvantaged men and women with job skills training, social support services, and paid employment opportunities. For more information, please visit their Web site at www.doe.org.