This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Berkery Noyes Releases Online And Mobile Industry M&A Report For Third Quarter 2012

NEW YORK, Oct. 3, 2012 /PRNewswire/ -- Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2012 mergers and acquisitions trend report for the Online and Mobile Industry. The report analyzes M&A activity in the Online and Mobile Industry across the three-month period and compares it with data for the six previous quarters.

Total volume in the report decreased 12 percent, from 516 to 454 transactions. At the same time, transaction value fell 33 percent, from $22.4 billion to $15.0 billion. However, the median revenue multiple increased from 1.5x to 1.9x and the median EBITDA multiple rose from 7.5x to 9.4x.

E-Content transaction volume increased 13 percent, making it the segment with the largest quarterly rise. M&A in the E-Commerce segment, after increasing 37 percent from first to second quarter 2012, declined 36 percent in third quarter 2012. This was partially influenced by a slow-down in daily deal transactions, a subsector that decreased 62 percent.

Meanwhile, transactions in the report involving consumer mobile apps showed a robust level of activity, rising 42 percent on a quarterly basis. Social discovery apps in particular have helped drive demand during the last two quarters, including Facebook's acquisition of Glancee and Groupon's acquisition of in second quarter 2012.

"The consumer industry is finding value in location based technologies and social discovery apps," said Evan Klein, Managing Director at Berkery Noyes. "One interesting aspect is that companies can geocode and layer comparative shopping prices onto mobile devices in order for users to find the 'best' deals. These social networking applications, which allow for hyper-targeted local advertising, are capable of announcing deals or specials only to those within a certain radius of the business' physical location."

Moreover, the term "social graph," which is used to depict people's relationships and connections, has become a key aspect of the Online and Mobile Industry. Notable transactions with a social graphing element in third quarter 2012 included Facebook's acquisition of Swaylo in the E-Marketing & Search segment, Jobscience's acquisition of Atomkeep in the SaaS/ASP segment, and Betawork's acquisition of Digg in the E-Content segment. This continued a trend of social graphing transactions from earlier in the year, such as Klout's acquisition of Blockboard and Twitter's acquisitions of RestEngine and Summify.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs