In this Industry Report

Screen Digest has researched the recent funding and M&A activity in the mobile industry and derived quarterly as well as industry trends for the period starting Q1 2007. This report combines Mobile Intelligence data and analyst commentary covering global mobile funding and M&A deals.

Highlights:

• With 22 deals versus 44 in Q1 2008, the quarterly number of M&A deals related to mobile content has dropped by 50% year-on-year. The current climate favours consolidation, and bigger companies with substantial cash reserves might seize the opportunity to acquire attractive assets at bargain prices.
• In Q1 2009, Cisco Systems bought handheld video camera maker Pure Digital for Euro 450m; Nokia acquired German mobile software developer Bit-Side; ARM bought Swedish mobile video chip specialist Logipard; and Qualcomm acquired multi-platform video specialist Digital Fountain.
• Key players in the mobile industry have already set their M&A strategies for the short-to-medium term. Microsoft expressed interest in categories in which it is already active but does not yet dominate, most likely mobile search and advertising. Google is bolstering its antitrust lobbying efforts and is unlikely to pursue any large-scale acquisition but smaller companies with relevant intellectual property and talent.
• In terms of value the total Q1 2009 recorded funding volume dropped 35% year-on-year to Euro 379m, which represents a 25% drop compared to the previous quarter. Roughly 10% of the deals were seed or first rounds, showing an emphasis on more advanced stage start-ups in today's timid venture climate.

In this report:

• Mobile funding: the end of a cycle
• Mobile payments and advertising still popular
• Q1 2009: top funding deals in mobile
• Regional analysis: USA stays ahead of Europe
• Activity Spotlight: Mobile Advertising
• Mobile M&A: cautious buyers stall the market
• Company M&A Spotlight: Google
• IPO spotlight: GREE (Japan)

List of tables and charts:

Mobile Media Intelligence

Author/s

Julien Theys

Territories covered

Western Europe

Belgium, Finland, France, Sweden, UK,

North America

Canada, USA,

Africa and Middle East

Israel,

Asia-Pacific

China, India,

Companies mentioned