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

Frontier AI Peaked. Here's What Comes Next

The prevailing narrative around artificial intelligence (AI) has been one of relentless scale. Bigger models, bigger clusters, bigger budgets. The assumption, largely unchallenged until recently, was that raw parameter count translated directly into competitive advantage. New research from Omdia suggests it's time to retire that assumption. According to the latest market study by Omdia, parameter growth in frontier AI models has slowed to around 5 percent annually since 2021, a stark contrast to the more than hundredfold expansion seen between 2019 and 2021. Enterprise AI Market Development For executives who have been making infrastructure and investment decisions based on the assumption that AI would keep demanding ever-larger, ever-more-expensive hardware, this finding deserves serious attention. The race to the top of the model size leaderboard has, at least for now, plateaued. Crucially, Omdia's analysts are not reading this as an AI winter. Alexander Harrowell, senior pri...