Skip to main content

Technology, Media and Telecom M&A Trends in 2016

The Technology, Media and Telecommunications (TMT) sector has experienced a re-balancing compared to the record M&A activity seen in 2015, according to the latest global market study by Mergermarket.

During the first half (H1) of 2016, 1,363 deals worth $223.1 billion represented a 41.6 percent decrease in value compared to H1 2015 ($382.3 billion, 1,580 deals), and the weakest H1 deal value and count since 2013 ($173.5 billion, 1,056 deals).

Reflecting this low activity, no mega-deals (< $10 billion) took place within the Technology, Media and Telecommunications sector during H1 2016, compared to a record nine during the same period in 2015, with the highest recorded deal of H1 -- Chinese Internet giant Tencent Holding's acquisition of Finland's online gaming editor Supercell -- valued at $8.6 billion.


TMT Market Development Results

Following a succession of high valued deals seen over the past few years, Telecommunications M&A seems to be feeling the effects of an increasingly saturated market.

According to the Mergermarket assessment, the sub-sector saw just 78 deals worth $27.1 billion during H1 2016, plummeting 82.4 percent by value compared to H1 2015 ($154.1 billion, 100 deals), to reach the lowest half-year deal value since H1 2009 ($26.9 billion, 77 deals).

Moreover, many Technology companies are at the beginning of their innovation life cycle, and as a consequence less mature businesses are coming to market commanding smaller price tags.

M&A targeting Technology during H1 ($152.0 billion, 1,025 deals) highlights this trend, recording a 25.9 percent value decrease compared to H1 2015 ($205.2 billion, 1,172 deals), while accounting for 147 fewer deals.

Europe suffered the largest regional fall in Technology M&A activity, with 305 deals worth $24 billion marking a 44.3 percent drop in value compared to H1 2015 (355 deals, $43 billion).

Furthermore, the run-up to the Brexit referendum slowed UK Technology M&A, with 75 deals worth $3.1 billion announced in the first half of the year representing a 57.5 percent decrease by value compared to H1 2015 (74 deals, $ 7.4 billion), and its third consecutive quarterly decline in deal value.

Popular posts from this blog

How AI Transforms Financial Decision-Making

Artificial intelligence (AI) has emerged as a transformational force, reshaping business processes and unlocking new possibilities for efficiency and innovation in corporate finance. The latest Gartner survey on AI usage in finance provides evidence of this emerging trend, offering valuable insights into the future growth trajectory of AI in finance. The Gartner survey reveals a significant milestone. As of 2024, 58 percent of finance functions actively use AI technology -- that's a substantial increase from previous years. Artificial Intelligence Market Development Perhaps even more telling is the projection that by 2026 more than 80 percent of finance functions are expected to be leveraging AI solutions. The survey sheds light on the use cases of AI in finance: AI is being deployed to enhance forecasting accuracy and provide deeper insights into financial trends. Automation of routine tasks and improved accuracy in financial reporting are key benefits observed. AI algorithms are