Outsell, Inc. Predicts Information Industry Slowdown: Asia and EMEA Are Poised to Surpass The Americas; Unveils Analysis During Event Co-Produced with The Jordan, Edmiston Group, Inc. (JEGI)
- JEGI Also Unveils Data on the High Value of M&A Transactions in the Media Industry This Decade, and Looks at Growth Drivers of M&A Value through 2010
Burlingame, CA, New York, and London—November 13, 2007—According to a new analysis from Outsell, Inc., the market for information in Asia, Europe, the Middle East and Africa is heating up so fast that it has the potential to outpace the American market within two years or less. Outsell has valued the industry overall to reach $448 billion by 2010, at a forecasted compound annual growth rate (CAGR) of 5.5 percent from its current $380 billion valuation.
During a presentation today on “The Global Industry Outlook” at Outsell’s Signature Event, Chief Analyst Leigh Watson Healy noted that information industry revenues generated in Asia and the EMEA regions (Europe, Middle East and Africa) are poised to surpass North, South and Central American revenues within one to two years. The scales are already tipping in that direction. American information industry revenues are currently 53 percent of the worldwide total, with EMEA and Asia at 47 percent.
Outsell’s Signature Event, co-produced with The Jordan, Edmiston Group, Inc. (JEGI), is a global, invitation-only conference of CEOs, COOs, Presidents and Managing Directors of major information industry companies—from integrated media companies to search companies, aggregators, and research organizations. This year’s conference is taking place November 11-13 in Kiawah Island, SC.
With the changes ahead, Ms. Healy advised information industry executives to “drive speedier time to market, be clear on your value proposition, and insist on an agile mindset, organization and processes.” She also unveiled Outsell’s 10 predictions for the information industry in 2008. Among them: Outsell sees a reinvention of business processes ahead as software, content and communities converge. In addition, the firm expects the next evolution of the Internet experience to be Web 3D.
In a presentation on “M&A Outlook and Valuations,” JEGI Founder and CEO Wilma Jordan emphasized that transaction values within the media industry (1) remain robust. In the first nine months of 2007 alone, the value of M&A transactions totaled $59.5 billion, 18% greater than the $50.5 billion total for all of 2006. During this period, transaction multiples have reflected buyers’ assessments of which sectors will be high growth, with consumer online media and interactive marketing services generating the highest multiples.
Since 2001, Ms. Jordan noted, M&A deal activity has been on an upward trend. For example, growth in the total value of M&A transactions in the B2B, B2C, and marketing services markets has far outpaced the growth of the markets themselves. On a compound annual growth rate (CAGR) basis, transaction value grew 27 percent, while market size increased just 5 percent.
According to JEGI’s research, interactive media is expected to grow from 7% market share in 2006 to 14% market share in 2010, driving 40% of the growth for the media industry. As legacy media companies retool their portfolios due to the disruption of the Internet, they will continue to plow funds into acquisitions. “We expect major media companies to invest 20-30 percent of their market caps into higher growth businesses over the next few years,” Ms. Jordan said.
Leigh Watson Healy and Wilma Jordan are available to discuss their presentations in more detail. Journalists should contact Dawn Ringel, Warner Communications for Outsell at 781-449-8456 or dawn@warnerpr.com, and Adam Gross for JEGI at 212-754-0710 or adamg@jegi.com.
ABOUT OUTSELL, INC.:
Outsell is the only worldwide market research and consulting company that delivers must-have intelligence and advice to publishers and information providers. We analyze markets, companies, and trends, and provide fact-based recommendations for high-level executives and product development, marketing, and strategy teams. In addition, we work with information managers to benchmark spending and demonstrate best practices. Outsell invests significantly in original research each year to guide clients in optimizing their strategies, plans, and performance. Outsell’s headquarters are in Burlingame, CA, US and London, UK. Visit us at www.outsellinc.com.
ABOUT JEGI
The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY (www.jegi.com) is a leading provider of independent investment banking services for the media and information industries. As a leading M&A advisor to media and information companies, JEGI has closed numerous high-profile transactions for: global media and information companies; entrepreneurial owners; and private equity and venture capital funds. JEGI has established an impeccable reputation in the marketplace, which reflects its superior performance on behalf of its clients. The firm’s executive team of investment bankers has over 200 years of combined experience across the media and information market sectors that JEGI serves.
(1) JEGI’s presentation covered the following market sectors: B2B Media (b2b magazines & events, b2b online media, and database & information); B2C Media (consumer magazines, consumer online media, and newspapers); and Marketing Services (interactive marketing services and traditional marketing services).
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