ITV M&A Activity Tops Four Billion Dollars

Transactions within the interactive television (iTV) industry were valued at more than $4.1 billion dollars, including $3.5 billion in acquisitions and $684 million in equity investments, during 2000, according to a new study.

The report, “Interactive Television Industry – Middleware Segment Leads Merger and Acquisition Activity in 2000,” was issued by the New York-based Winterberry Group. According to the study, much of the activity was driven by the middleware segment, which is made up of software that helps iTV networks and any applications overlaid on them to interact. This segment drove $3.4 billion in transactions.

Deals involving iTV hardware garnered $170 million, while those focused around back-end software, including automated fulfillment and transaction database managment, made up $140.3 million. Agreements involving user applications, such as personal video recording, video on demand, and Internet access through the television set made up $432 million.

“Consolidation within the middleware segment is reflective of a larger trend towards consolidation across the iTV industry,” said Michael Petsky, chief executive officer of Winterberry Group, in a statement.

Petsky continued, “In this emerging market that’s free of industry-wide technical standards, major iTV software companies are going to continue to jockey for position – primarily through consolidation – until a few establish themselves as the industry’s elite.”