US Economy Worries 'Cloud' Mergers Market

05 October 2007

NEW YORK: The pace of US media and information industry mergers is slowing amid fears of an economic slump, according to investment bankers Jordan Edmiston.

The firm's latest research claims third quarter activity was "clouded by credit market disruption and concerns for a potential advertising and broader economic slowdown."

Despite the impending gloom, however, deal values for the first nine months of 2007 are already up on numbers for the whole of 2006.

Among the most notable transactions was the Walt Disney Company's purchase of Club Penguin for $350 million (€256m; £172.5m).

The marketing services sector was dominated by Google's contentious plans to acquire DoubleClick for $3.1 billion.

News Corporation's $5.6bn purchase of Dow Jones, publisher of the Wall Street Journal, drove up deal values by 37% for the first three quarters of 2007 compared with the year-ago period, according to Jordan Edmiston.

Consumer magazines slowed during Q3, although the first three quarters deal values remain more than 80% above the same period last year.

Data sourced from; additional content by WARC staff