Media M&A Activity Surprisingly Steady Says AdMedia Partners

80% of Executives Surveyed Expect Their Organizations Will Be
Involved in Media Mergers and Acquisitions in 2008 Despite Widespread
Pessimism About Economy
NEW YORK--(Business Wire)--AdMedia Partners, a leading merger and acquisition advisor, today
announced the findings of its 14th annual survey of nearly 1,600
senior executives at leading services media companies. Respondents to
the survey anticipate media M&A activity to continue at a surprisingly
steady pace. In fact, 80% of the executives surveyed expect their
organizations will be involved in media mergers and acquisitions in
2008 despite widespread pessimism about the prospects for U.S.
economy.

AdMedia Partners conducted its survey in December 2007 to elicit
executive views on media merger and acquisition activity among U.S.
companies in 2008. Executives from the U.S. and abroad, whose
companies operate in a variety of media - many in more than one -
responded to the survey.

"The most striking findings are widespread pessimism among media
executives about the prospects for the U.S. economy and the belief
that fallout from the sub-prime credit crash will change the dynamic
of the media M&A market. While in recent years media M&A has been
dominated by financial buyers, it is expected once again to be the
domain of strategic players," said Mark M. Edmiston, a Managing
Director of AdMedia Partners.

"As in many other industries, media executives expect the credit
crunch to reduce the opportunity for private equity to compete
aggressively for acquisitions. However, they also expect strategic
buyers to more than fill the gap. Thus, even though private equity
will be less active, respondents still anticipate a steady pace of
industry transactions. Indeed, 80% of respondents expect their own
organizations to complete at least one media acquisition or
divestiture in 2008," Edmiston added.

Respondents do anticipate media M&A deals will be on a smaller
scale than in recent years, and that valuations will level off in most
sectors after steady expansion since the end of the recession in 2003.
Prices are seen as particularly inflated for online media properties,
where 62% of respondents believe there is a valuation "bubble," and
most expect it to burst in the next 18 months.

In a significant shift, just 46% of respondents advise prospective
buyers to "act now" on transactions, down from 77% a year ago. Not
surprisingly, seven in ten respondents advise prospective sellers to
"act now," an insignificant change compared with the 74% who said they
would give that advice in 2007. Conviction that valuations will soon
drop informed many of these responses, however, a sizeable minority
warned against gambling on what might be, and would urge both buyers
and sellers to seize opportunities that make good business sense
regardless of the condition of the overall market.

To access a copy of the report on the prospects for media mergers
and acquisitions in 2008, please visit the AdMedia Partners website at
http://www.admediapartners.com.

About AdMedia Partners

Founded in 1990, AdMedia Partners provides M&A advisory services
for digital and traditional media, marketing and information
businesses. The firm has completed over twenty media M&A deals in the
past year, including transactions with Hachette Filipacchi Media, in
its sale of assets of Premiere to Wenner Media, Bonnier AB, with its
acquisition of Time4Media, and Burrill & Company, in its union with
VNU Business Media.

for AdMedia Partners
SEO-PR
Greg Jarboe, 978-549-9537
greg.jarboe@seo-pr.com
http://www.admediapartners.com

Copyright Business Wire 2008