After several online mega-deals in 2007, the total value of Internet media mergers and acquisitions dropped 62 percent to US$16.9 billion in 2008, according to a new report by Peachtree Media Advisors in New York, Media Post reported.

The Internet-related M&A dollars fell from $44.4 billion in 2007, even though the number of deals was up 15 percent to 707.

Those notable deals in 2007 boosting the total dollar last year included Microsoft's $6 billion acquisition of aQuantive, Google's $3.1 billion purchase of DoubleClick, as well as WPP Group's $650 million purchase of 24/7 Real Media, Media Post reported.

In 2008, "there were less of those huge deals, and the reason is because a lot of the diversified media companies that were doing the buying have seen their own valuations go down," according to John Doyle II, founder and managing director of Peachtree, an investment bank focusing on the interactive marketing and out-of-home ad sectors.

The biggest news in 2008 was Microsoft's proposed $4.7 billion takeover of Yahoo, which may not be over yet.

The sector with the lion's share of M&A dollars, $6.2 billion, or 37 percent, was consumer-focused businesses, including social networks, online gaming and video properties, blogs and content sites, Media Post reported.

Online business services, such as ad networks and lead-generation, contributed $4.8 billion, or 28 percent, while e-commerce and classifieds made up $2.8 billion, or 16.7 percent. Others included ad-serving and Web analytics ($2.5 billion, and 14.6 percent), and mobile content and applications ($592 million, 3.5 percent).