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Some Good News: Lots More Internet M&A Coming Next Few Quarters

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Common sense says there will be a lot more M&A deals in the coming few quarters in the media and Internet sector. The Comcast-NBCU deal talks is on the biggest end of the spectrum. On the Internet side of things, Collins Stewart analyst Sandeep Aggarwal came out with a research note today outlining some of his picks on possible companies that are ripe for picking. His view: “all of the top 5 largest Internet Co’s (AMZN, EBAY, GOOG, MSFT, and YHOO) will likely be acquisitive during the remainder of ’09 and ’10 with YHOO and GOOG leading the pack.”

Top 10 themes for M&A? 1) Cloud computing; 2) Mobile Internet; 3) Social media; 4) Vertical ad networks; 5) Vertical content Sites; 6) eBook reader; 7) International; 8) Web analytics; 9) Interactive agencies including SEM agencies and other marketing servicing companies; and 10) Comparison shopping.

Top private companies that could be bought or IPO: Facebook, LinkedIn, Twitter, Coremetrics, EyeBlaster, EyeWonder, Education Dynamics, Glam Media, eFrontier, JumpTap, Meebo, Zillow, eHarmony, Digg, Exact Target, Rock You, Slide, Foresee, and Yelp. Public companies list is smaller: Comscore (NSDQ: SCOR), TechTarget (NSDQ: TTGT), and Valueclick.

Interestingly, Techcrunch is also on the list of possible companies that could be bought, and Yahoo (NSDQ: YHOO) as most likely buyer followed by Google (NSDQ: GOOG) (really? AOL (NYSE: TWX) is still the top pick, my opinion, following their talks last year).

Chart about possible companies for sale and buyers after the jump:

15 Responses to “Some Good News: Lots More Internet M&A Coming Next Few Quarters”

  1. I actually bet that the data start up companies will be the main acquisition target for the next year– Companies like exelate, BlueKai on the behavioral targeting front, and semantic data companies like Peer39 will be the hot commodities on the market. Potential acquires are the usual suspects : Microsoft, Google (becoming more and more active in the m&a arena), Yahoo, but we will see some more data companies being acquired by the liked of Adobe, Akamai, the large offline data companies and a big push from the top agency world to own these data companies. It will be interesting.

  2. I doubt Facebook, Glam Media, Hulu & LinkedIn would want to be acquired at this stage. They all have scale, leadership positions vs competition, significant revenues, are profitable, and are growing in the recession. These companies are all likely to be large IPO's next year.

  3. ed dunn

    What this list implies is that Amazon, Ebay, Yahoo, Microsoft and Google is the end all and all. No one starts a online business to make a difference; they launch a service with the end goal to be acquired by these firms.

    The analyst is a comedian to me..

  4. snuggie

    Rock You???? HA! they don't even have a viable business model…who the hell would buy them? What would you be buying?

    Meebo I will withhold judgment on until I see what they are doing on the monetization front.

    Both companies valuations will make the required multiple to be way to high

  5. Interesting?

    If "vertical content sites" is on the list then why isnt WebMD or Everyday Health not "in play"? They are the only two viable (and you could argue only WebMD is viable) health content sites out there. And of course health is a huge, growing market.

    MSFT or YHOO should buy WBMD or Everyday Health.

  6. The only company on that list with a unique/valuable service offering is coremetrics. The rest are just colorful adspace to be ignored by clickers in the internet jungle.

  7. 1. No one will pay for kayak…
    2. Ning :) wtf? no one will put the money they will want.
    3. Edmunds for eBay? man – you know nothing about the automotive industry.
    4. I can go on and on…

    Are you on drugs?