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 With the start of the summer and the second half of 2009, media boutiques and investment firms have been taking stock of the year so far.Berkery, Noyes & Co. LLC reports that the total number of media deals decreased by 47% in the first half of 2009, and the value of transactions was 75% below the first half of 2008. Time Warner Inc. (NYSE:TWX) and Veronis Suhler Stevenson were the most active buyers, with four transactions each. Internet media was the most active niche, with 59 deals. Berkery Noyes estimates that nearly two-thirds of the companies purchased were valued at between $600,000 and $90 million, including debt. Education has attracted money from investors such as ex-General Electric Co. (NYSE:GE) honcho Jack Welch, who put money in online education company Chancellor University System LLC and is lending his name to the Cleveland institution's M.B.A. program. Jordan, Edmiston Group Inc. says the number of deals in the education sector -- ranging from information providers to technology and training companies -- over the first half of 2009 rose 26%, to 48, from the first half of last year. The value of the deals was $2.3 billion, up from $2 billion in the first half of 2008, which was a down year. JEGI adds that the increase of "nontraditional students" who are returning to school will benefit online learning companies. Testing and assessing the progress of students from kindergarten through 12th grade may drive more dealmaking. It has been a brutal first half for traditional media sectors such as publishing and broadcasting. The next two years are prime time for private equity buyers looking at the sectors, Catalyst Investors says. "There is very little if any equity value left in these companies," Catalyst partner Tyler Newton writes. Lenders have become "de facto owners" for most of the privately held companies in the sector. Not all of these companies will survive, but many niches may be able to support one or two viable players. "Dealing with troubled lender-owners will create interesting investor opportunities," Newton concludes. - Chris Nolter Read the Berkery Noyes report on media M&A Get Jordan, Edmiston Group's break down of the education deals, from the firm's site Read Catalyst's take on traditional media Read Mark Edmiston's thoughts on the future of magazines from The Deal Read story about financial trouble at McClatchy from The Deal Read story about financial trouble at Gannett from The Deal
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