Newsletter and directory merger and acquisition activity continued to be anemic in the third quarter of 2002, according to the investment banking firm of Whitestone Communications, which tracks the pace of deals for its publication, Who's Buying Whom.
"The economic recovery appears to be missing in action," Whitestone associate Jenifer Lindenman said. "If the economy picks up, newsletter and directory publishers will start to see improved bottom lines, leading more of them to consider selling."
The number of deals in the third quarter was five compared to seven in the second quarter. Activity in both these quarters was below the approximately ten deals per quarter that were completed in 2001 and ten to 20 deals per quarter in 2000.
Whitestone reports that the value of acquisitions was about $21 million in the third quarter 2002. The largest deals were two acquisitions by infoUSA as it bought Hill-Donnelly Directory Company and City Publishing—both cross-reference directory publishers.
This article is reprinted with permission from The Newsletter on Newsletters. Copyright October 17, 2002. www.newsletterbiz.com
