Dealmakers in the Technology, Media, and Telecommunications sectors (TMT) are entering 2025 with renewed optimism. This sector’s pivotal role in the AI boom drives investment opportunities, according to recent PwC research. Easing macroeconomic and geopolitical challenges, particularly in the U.S., has also set the stage for a favorable mergers and acquisitions (M&A) environment.

Media M&A market dynamics

PwC’s Global M&A Industry Trends Report notes that the U.S. administration’s focus on deregulation is poised to support megadeals (transactions exceeding $5 billion) and boost executive confidence. Anticipated interest rate cuts by central banks should foster a more vibrant M&A landscape.

According to PwC’s 28th Annual Global CEO Survey, 76% of TMT executives who made acquisitions in the past three years plan to pursue further deals within the next three years. This signals a strong strategic focus on media M&A for growth and innovation.

The evolving TMT landscape presents significant implications and opportunities for the media sector. These include:

1. AI as a growth driver

AI investments transform media content production, distribution, and audience engagement strategies. Premium media companies must harness AI to streamline workflows, deliver personalized content, and improve advertising efficiency.

2. Surge in media M&A activity

Media companies will likely pursue strategic acquisitions with regulatory and economic conditions becoming more favorable. Smart partnerships or mergers with technology firms can enhance digital capabilities and foster AI-driven innovations.

3. Capital spending

Extending capital investment in energy and real estate opens new avenues for media companies. Given these market dynamics, collaboration involving data centers or energy-efficient content delivery networks could become significant.

4. Deregulation trends

A more relaxed regulatory environment may facilitate the way for innovative cross-platform deals and media-tech partnerships. For some, this will unlock new revenue streams.

5. Evolving content and platform strategies

The shift in media consumption—toward digital-first platforms, podcasts, and creator-generated content—requires media companies to reassess their content strategies. Multi-platform distribution and niche content offerings will be critical to staying competitive.

6. Investor confidence spurs media M&A

Reduced macroeconomic pressures and lower interest rates will likely attract private equity investments. This will fuel innovation and expansion for forward-thinking media companies.

AI: a catalyst for investment

AI remains a focal point for investment, particularly in the U.S. In January 2025, a landmark $500 billion joint venture between OpenAI, Oracle, and SoftBank to develop a network of AI data centers. This venture should reinforce the U.S.’s position as a global AI hub.

Companies channeling capital into high-growth areas such as data analytics, automation, and generative AI enhance products to drive future growth. Notable deals in 2024, including Cisco’s $28 billion acquisition of Splunk and HPE’s $14 billion acquisition of Juniper Networks, exemplify this trend.

Regulatory and geopolitical shifts

The new administration is undergoing significant changes in the U.S. regulatory landscape. Appointments to the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) should foster a more deregulated environment, easing barriers to media M&A. These changes may have global implications, influencing deal activity in other regions.

After a prolonged period of high interest rates, central banks expect to implement gradual rate cuts in 2025. Lower borrowing costs will likely invigorate financial sponsors, reversing the trend toward corporate-led deals and a resurgence in private equity investment.

Media industry evolution

As the media landscape transforms, digital-first platforms necessitate strategic portfolio assessments. As companies adapt, transformative M&A, including divestitures of non-core assets, is likely. Vivendi’s recent restructuring and Comcast’s strategic moves exemplify this trend.

The Technology, Media, and Telecommunications sectors (TMT)sector is ready for a resurgence in M&A activity in 2025. The convergence of AI-driven innovation, regulatory shifts, and capital market dynamics creates fertile ground for strategic acquisitions. Those media businesses that are agile and responsive will seize new opportunities and navigate well in this dynamic landscape.