Released in January 2007, the AlwaysOn OnMedia 100 list highlights “game-changing players in advertising, marketing, and promotion”. These online media, technology and marketing services companies were very active in M&A and financings throughout the year. Taking a look back on 2007:

• Ten of the OnMedia 100 companies were sold;
• Another 10 made acquisitions; and
• Thirty-five raised money from financial investors.

All told, 49 of the 100 OnMedia companies participated in 55 financial transactions totaling $3.2 billion in value, as shown in the following chart.

Total # of Transactions: 55


Total Transaction Value: $3.2 billion


Of course, this was in the context of the biggest year ever in media M&A. As shown in the chart below, the number of deals announced increased sharply across the 11 media sectors tracked by JEGI, and total transaction value for 2007 was equal to 2005 and 2006 combined.


Source: JEGI Transaction Database

Financings
Venture capital funds and other investor groups invested nearly $800 million in 35 of the OnMedia 100 companies in 2007. The largest single play was Microsoft’s $240 million investment in Facebook for 1.6% of the company. Other significant financings included a $59.5 million investment in Brightcove (internet TV provider) led by AllianceBernstein, Brookside Capital and Maverick Capital; a $45 million investment in Reactrix (place-based interactive advertising company) led by D. E. Shaw Group and Menlo Ventures; and a $25 million investment in IGA Worldwide (in-game advertising network) led by NBC Universal’s Peacock Equity and KTB Ventures.

Sales and Acquisitions
In 2007, 10 of the OnMedia 100 companies were sold, for an estimated total of $2.1 billion. Yahoo acquired two of the 10 - Right Media and Blue Lithium - and AOL was also a serial buyer with the acquisitions of Quigo and Third Screen Media. Six other acquirers picked up the balance, ranging from familiar US names Google and AT&T to British media monitoring giant TNS.


OnMedia 100 companies also made 10 acquisitions in 2007 valued at nearly $250 million. Adknowledge, an online advertising marketplace backed by Technology Crossover Ventures, IDG Ventures Pacific, and Palo Alto Venture Capital, purchased Cubics and Mediarun. Other notable buy-side transactions included Facebook’s acquisition of Parakey, the acquisition of Moniker from Seevast by Oversee.net, and the purchase of Personal Bee by Technorati.
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1JEGI represented Cymfony in its sale to the TNS Media Intelligence division of Taylor Nelson Sofres.
2JEGI represented Seevast in the sale of its Moniker division to Oversee.net.