Future sells its US Music division to New Bay Media for $3M

January 13, 2012 — Fusion DigiNet

Future plc subsidiary Future US is selling its loss-making, New York based, Music Division to NewBay Media for a gross consideration of $3.0 million. The sale involves the US magazines Guitar World, Revolver and Guitar Aficionado and the related websites together with a licence to operate the Golden Gods Awards show in the US.

The gross consideration is payable as follows: $2.60 million in cash on completion; $0.15 million in cash on 30 September 2012; and $0.25 million in cash in the third calendar quarter of 2012 based on achievement of certain operational targets. In addition, NewBay will assume all subscription liabilities relating to the titles. The net sale proceeds will be used for the continued restructuring of Future US and to reduce the level of bank debt. The is made on a cash-free/debt-free basis.

Post completion of the sale, there will be a short transition period during which Future US will continue to support NewBay while NewBay integrates the US Music Division into its portfolio. Once this period is over, Future will market its New York property.

For the year ended 30 September 2011, the revenue and pre-tax loss attributable to the US Music Division was £8.5 million and £3.8 million, respectively.  At 30 September 2011, the US Music Division had gross assets of £1.8 million.

Mark Wood, Future’s Chief Executive, said: “The sale represents a big step forward in our strategy to streamline our US business and return it to profitability by 2013. The merger of our mainstream US operations and our UK business is on track, and we are making good progress in reducing costs. We continue to accelerate our transition to a digital business model and to create a single global product line, selling our entire range of digital content to high-value audiences in all key markets.”

USA, New York, NY

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Ad Network and publishing company PK4 Media acquires JSFour Media and Technology

January 12, 2012 — Fusion DigiNet

PK4 Media, an online video advertising network and publishing company, has acquired JSFour, a media and technology company. As part of the acquisition JSFour founder Jimi Smoot will join PK4 Media as the VP of Product Development. The two companies have been in collaboration to develop an advanced video distribution platform named Bishop.

The Bishop Video Platform is designed for the next generation of online video. At the core of Bishop’s DNA is JSFour’s Render platform, which was engineered for publishers to lower the cost associated with running video on their site. PK4 Media brings advertisers to the mix to offset any cost.

“When JSFour showed us their low cost and streamlined method for publishers to add video to their site, light bulbs went off instantly,” said PK4 Media CEO and Founder, Tom Alexander. “We knew that the publishers we have relationships with would benefit from this platform, and any costs would be offset through our brand partners. We acquired the technology almost immediately.”

USA, Los Angeles, CA

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Publishers Clearing House Acquires Liquid Wireless

January 12, 2012 — Fusion DigiNet
Publishers Clearing House, a multi-channel direct marketer, has acquired Liquid Wireless, a Portland, Maine-based company specialising in mobile lead generation, media buying and analytics.  The company’s mobile platform and services offering is a 360 degree approach to lead generation and customer acquisition.

“The Liquid Wireless team has built technology and processes that are unmatched by most larger mobile technology companies,” said Andy Goldberg, CEO of Publishers Clearing House.  “This enables Liquid Wireless to provide quality customer acquisition at a scale that has never been seen before on mobile. The business is a terrific complement to the multi-platform model that PCH has already created and continues to successfully execute on daily, delivering quality customer acquisition services to over 1000 marketers. We are excited to have them as part of the PCH family.”

The Liquid Wireless team will continue in Portland, Maine while becoming an extension of the Publishers Clearing House digital advertising sales organisation.

NEW YORK and PORTLAND, Maine

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Berkery Noyes Releases 2011 Year End Online & Mobile Industry Mergers and Acquisitions Report

January 12, 2012 — Fusion DigiNet
Berkery Noyes, an independent middle market investment bank, has released its 2011 Full Year Mergers and Acquisitions Trend Report for the Online & Mobile Industry. The report analyses the sector for 2011 and compares it with similar activity in 2009 and 2010.

Median revenue and EBITDA multiples increased from 2010 to 2011. The median revenue multiple went from 1.9x to 2.4x, a 26 percent rise, while the median EBITDA multiple increased from 11.4x to 12.5x. There were 1531 strategic transactions, an increase of 33 percent compared to 2010. Total volume in the Online & Mobile space increased 33 percent over 2010, from 1299 to 1723 transactions.

“M&A activity for social media and analytics companies continues to grow as a broader range of players seek to capitalize on this evolution in media and marketing communications,” said Kathleen Thomas, Managing Director at Berkery Noyes. “The world’s largest retailer, Walmart, entered the market in April with their $300 million acquisition of Kosmix Corporation, and Kosmix, now known as @WalmartLabs, has already completed four deals.”

@WalmartLabs, which is now the retailer’s digital technology division, has been building what they call “the future of commerce” through their “Social Genome,” a database combining billions of tweets, YouTube videos, Facebook messages and more. They claim this will assist shoppers with making decisions through “a broad array of social commerce applications” and ultimately help Walmart achieve greater margins and sales.

Total acquisitions involving social media and analytics companies rose 39% from 116 transactions in 2010 to 161 in 2011. The median revenue multiple for this sector between 2009 and 2011 was 5.5x.

A copy of the Full Year 2011 Online & Mobile Industry Mobile Industry M&A Trend Report is available at the Berkery Noyes website.

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Elsevier acquires QUOSA

January 12, 2012 — Fusion DigiNet

Elsevier, the  provider of scientific, technical, and medical information products and services, has acquired QUOSA a content management and workflow productivity solutions provider for researchers and information managers.

QUOSA’s current solutions and platform, including its Information Manager and Virtual Library, will continue to be supported. QUOSA’s technological capabilities will be developed into Elsevier-branded solutions, raising the efficiency of the search and discovery process. They will also allow researchers and information professionals to manage information more efficiently at the various stages of the research workflow including organizing, archiving and sharing.

“Elsevier is focused on delivering productivity enhancing tools to researchers and information managers to help accelerate and promote scientific discovery. Our acquisition of QUOSA ensures that we continue to deliver more value to our customers by improving the search, retrieval, management, analysis and sharing of the increasingly disparate types of information required to improve research outcomes,” said Alexander van Boetzelaer, Managing Director of Elsevier Corporate Markets. “QUOSA brings to Elsevier an innovative offering and technological expertise that align well with Elsevier today.”

Elsevier and QUOSA have collaborated successfully since 2007 when the latter’s PDF Download Manager was incorporated in SciVerse Scopus.  Later the feature was embedded in SciVerse ScienceDirect. Elsevier’s acquisition of QUOSA marks a continuation of this collaboration which has boosted research productivity for the users of both solutions.

Founded in 1996 and headquartered in Boston, QUOSA began by targeting the academic and government segments and now also serves a range of corporate customers, including more than half of the Top 25 pharma-biotech companies. Financial details of the acquisition are not being disclosed.

The Netherlands, Amsterdam & USA, Boston, MA

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The New York Times Co. to sell its16 regional newspapers to Halifax Media Holdings for $143M

January 11, 2012 — Fusion DigiNet

The New York Times Co. is to sell its group of 16 small,regional newspapers to Halifax Media Holdings LLC for $143 million.

The newspapers being sold include The Press Democrat in Santa Rosa, Calif.; the News Chief in Winter Haven, Fla.; and The Tuscaloosa News in Tuscaloosa, Ala. Halifax Media is based in Daytona Beach, Fla., and owns the Daytona Beach News-Journal.

“The sale of our Regional Media Group will enable The New York Times Company to continue our transformation to a digitally focused, multiplatform media company,” said New York Times Co.Chairman Arthur Sulzberger. Last year, the group accounted for 11 percent of The Times Co.’s $2.4 billion in annual revenue, according to the company’s annual report.

The Times Co., like many newspaper publishers, has struggled in recent years as advertisers shift from newspapers to cheaper alternatives on the Internet. It is trying to supplement its digital advertising push by charging readers for unrestricted access to its content on the Web, Apple Inc.’s iPad and mobile phones.

The company had said on Dec. 19 that it was in advanced talks to sell the regional newspapers to Halifax Media. That announcement came four days after the company said CEO Janet Robinson will step down at the end of the year.

The sale is expected to close in a few weeks, and The Times Co. will record an after-tax gain on the sale in the first quarter of 2012. It estimates that the net after-tax proceeds from the sale will be about $150 million, which it plans to use for general corporate purposes.

Other newspapers included in the deal are: Sarasota Herald-Tribune in Sarasota, Fla.; The Ledger in Lakeland, Fla.; Star-News in Wilmington, N.C.; Herald-Journal in Spartanburg, S.C.; Star-Banner in Ocala, Fla.; The Gainesville Sun in Gainesville, Fla.; The Gadsden Times in Gadsden, Ala.; The Courier in Houma, La.; Times-News in Hendersonville, N.C.; Daily Comet in Thibodaux, La.; The Dispatch in Lexington, N.C.; Petaluma Argus-Courier in Petaluma, Calif.; and North Bay Business Journal in Santa Rosa, Calif.

“The strong local news coverage these papers provide represents not only an important community service, but, in our eyes, a good investment,” Michael Redding, Halifax Media’s CEO, said in Tuesday’s announcement.

Privately held Halifax Media lists among its investors Stephens Capital Partners LLC and Redding Investments.

The New York Times Co. publishes its namesake newspaper as well as The Boston Globe and other newspapers. It also owns About.com.

Its shares added a penny to $7.77 in extended trading following the announcement. They had ended the regular trading session down 3 cents at $7.76.

USA, New York

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Berkery Noyes releases 2011 Year End Media Trends Report

January 10, 2012 — Fusion DigiNet

2011 Key Highlights

  • The largest announced transaction for 2011 was West Australian Newspapers’ acquisition of Seven Media Group, a portfolio company of Kohlberg Kravis Roberts & Co., for $4.15 billion.
  • The segments with the largest disclosed median enterprise value multiples for 2011 were Broadcasting with 3.8x revenue and Internet Media at 17.5x EBITDA.
  • There were 174 fi nancially sponsored transactions with an aggregate value of $11.05 billion, representing 12 percent of the total volume and 20 percent of the total value, respectively.

2011 Key Trends

  • Total transaction volume in 2011 increased by 15 percent over 2010, from 1225 in 2010 to 1409 this year.
  • Total transaction value in 2011 increased by 41 percent over 2010, from $38.31 billion in 2010 to $54.12 billion this year.
  • The median revenue multiple rose from 1.5x in 2010 to 1.9x in 2011. The median EBITDA multiple moved slightly from 10.4x to 10.6x.
  • The segment with the largest increase in volume in 2011 over 2010 was Marketing with a 29 percent increase from 332 transactions in 2010 to 428 transactions in 2011.

M&A Market Overview

  • Berkery Noyes tracked 3572 transactions between 2009 and 2011, of which 1013 disclosed fi nancial terms, and calculated the aggregate transaction value to be $119.95 billion. Based on known transaction values, we project the value of the 2550 undisclosed transactions to be $25.33 billion, totaling $145.27 billion worth of transactions tracked over the past three years.
  • The largest transaction tracked by Berkery Noyes between 2009 and 2011 was Comcast Corporation’s acquisition of NBC Universal, a subsidiary of General Electric Company for $22.85 billion, which was announced in 2009 and closed in 2011.
  • The most active acquirer by volume in the Media and Marketing industry between 2009 and 2011 was Publicis Groupe SA with 39 transactions, 24 of which were announced or closed in 2011.

Visit the Berkery Noyes website to download the full report

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Hustler Acquires Sapphire Media

January 10, 2012 — Fusion DigiNet

Adult entertainment media business Hustler has acquired Sapphire Media, a European distributor of adult content to television, VOD and wireless devices. The new parent entity for Sapphire Media is LFP Media BV.

Sapphire Media International BV distributes 7 adult channels across Europe, including Blue Hustler, Hustler TV, HustlerHD/3D and Daring!TV to over 900 distribution partners. It is a provider of adult content to IPTV, VOD and mobile operators. The company is headquartered in Amsterdam.

“We started working with Sapphire to bring Hustler TV to Europe back in 2005 and within a month we were the mostly widely distributed adult network there thanks in a large part to their efforts,” said Michael H. Klein, President, Hustler. “Based on our strong relationship with them and the prospects for future growth, we felt bringing the Sapphire team on board full time as part of our Broadcasting Group was the smartest move for us.”

USA, Beverly Hills, CA & The Netherlands, Amsterdam

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AdMedia’s Industry Survey – 2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms

January 10, 2012 — Fusion DigiNet

AdMedia Partners has released its latest industry survey, “2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms.’

The report reveals the viewpoints of buyers and sellers regarding 2012 valuations, advertising spending, M&A activity, and key trends affecting all industry participants, such as the changing nature of content delivery, consumption and monetization.

Respondents were generally optimistic about prospects for their industries and their own businesses in the year ahead, and expect that strong M&A activity in 2011 will continue into 2012. They believe there will be an increase in M&A activity driven by strategic buyers with historic amounts of cash on their balance sheets, private equity firms with large amounts of uninvested capital and changing industry dynamics.

Specific survey findings include:

  • Fifty-nine percent of respondents expect to seek an acquisition, up markedly from last year when 40% had the same expectation.
  • Highlighting the fact that significant capital is sitting on the sidelines, 55% of respondents who anticipate making an acquisition expect to fund using existing cash reserves; in addition, 43% expect to raise outside equity (e.g., from a private equity firm) and 27% plan to use debt financing.
  • Almost half of respondents (48%) anticipate contemplating the sale of their company and/or subsidiary operation in 2012, a significant increase over the 36% who expressed this opinion in 2011.
  • Approximately three out of four respondents anticipate that M&A by strategic buyers will be up in 2012.
  • Almost half of respondents anticipate that M&A by financial buyers will be up in 2012.
  • The most popular areas of expansion interest within the services sector were analytics, social and mobile. User-generated content and mobile were hottest topics for content respondents.
  • Respondents predict that valuations will remain strong in 2012, particularly for mobile marketing, social marketing, and digital media firms.

Visit the AdMedia Partners website to download a full copy of the report.

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Deloitte acquires Übermind

January 9, 2012 — Fusion DigiNet

Deloitte has acquired Übermind, an innovative mobile agency.  Terms of the deal were not disclosed.

“Mobile technologies are rapidly reshaping the nature of business. This represents a significant opportunity for companies to develop new interaction models with customers, employees and stakeholders,” says Janet Foutty, national managing director, technology, Deloitte Consulting LLP.

Based in Seattle, Wash., Übermind’s mobile strategy, engineering, design and creative talent transform the way companies use mobile solutions, using disruptive technologies to create inspiring and intuitive mobile applications designed to both strengthen brand and transform the business. Übermind complements Deloitte with extraordinary talent, tools and assets that are customized to the mobile development lifecycle, including proprietary frameworks and methodologies.

“By leveraging the strength of Deloitte’s global access, industry insight and deep talent, this acquisition allows us to provide even greater insight into the business and technology issues facing organizations today,” says Shehryar Khan, chief executive officer of Übermind, Inc. “Übermind’s complementary industry footprint enhances our collective ability to deliver tailored solutions to meet clients’ specific needs.”  Khan, along with Übermind founder Donald Brady, joins Deloitte Consulting LLP as principals.

For more information here

USA, Seattle, WA

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