Deal pace for Internet content segment strong, valuations rocket

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New York—Most of the publishing, information and training industry saw a slowdown, from record levels, in mergers and acquisitions last year, but transactions in the content-related Internet segment increased, according to Whitestone Communications, which tracks acquisitions and investments.

Deals in the content-related Internet segment totaled 87 last year, up from 77 in 2006. The value of content-related Internet deals increased to $2.4 billion last year, up from $1.9 billion.

Deals in other segments declined 24% last year to a total of 355.

“I would call 2007 the year for Internet community and social network transactions,” said Whitestone Managing Director Ed Fitzelle, in a statement. “It seemed like every private equity firm and information company wanted to be buying this type of business. Valuations were moving into the stratosphere but may be coming back to earth with the recent decline in the stock market and concerns about recession.”

—Carol Krol

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