In this Industry Report

Highlights:

• With 25 deals versus 34 in Q2 2008, the quarterly number of mobile M&A deals dropped by 26% year-on-year. Content categories (Advertising, TV, Video, Music, UGC, Games) accounted for half of those.
• Standing out in Q2 2009 is Intel's acquisition of embedded systems software specialist Wind River Systems for an estimated $880m. Ericsson's $1.1bn acquisition of Nortel's CDMA and LTE North American business will be taken into account in Q3.
• Mobile software was an important category with eight deals, including Amazon's puchase of SnapTell (product image search) and Lexcycle (ebook application developer). Research In Motion acquired Dash Navigation for an estimated $8m. Mobile advertising saw considerable consolidation as well, with a total of at least five deals.
• In terms of value, total Q2 2009 recorded funding volume dropped 58% year-on-year to $290m, which also represents a 41% drop compared to the previous quarter.
• Roughly one-third of the deals were seed or first rounds, and these first rounds mostly focused on advertising and software companies. This is a strong increase compared to the previous quarter which saw less than a fifth of the deals being seed or first rounds.
• The average deal value went down to $6.6m, from $9.7m in Q1 and $10.6m in Q2 2008.

In this report:

• Mobile M&A: cautious consolidation ongoing
• Company M&A Spotlight: Microsoft
• Mobile funding: funding sources drying up
• Mobile payments and advertising still popular
• Q2 2009: top funding deals in mobile
• Regional analysis: USA influence eroding
• Activity Spotlight: Mobile Games and Software

List of tables and charts:

Mobile Media Intelligence

Author/s

Julien Theys

Territories covered

Western Europe

Finland, France, Italy, UK,

North America

Canada, USA,

Africa and Middle East

Israel,

Asia-Pacific

China, India, Singapore,

Companies mentioned