The media and technology sectors have undergone an M&A boom in recent years, with dealmaking in the industries outstripping even the rapid pace seen in other sectors. Across media and technology combined, the number of deals jumped from 1,860 in 2011 to 2,980 in 2015, according to Mergermarket data. In cash terms, the increase was even more dramatic, with deal values rising from US$206B to US$508B during that period.
As Figure 1 shows, M&A volumes slowed during the first half of 2016, with 1,377 deals worth US$196B across the two sectors. However, while this suggests M&A for the year ahead will come in behind 2014 and 2015, dealmaking remains on target to outstrip 2013. The M&A boom of the past two years may be slowing, but big deals are still getting over the line.
Indeed, this year has already seen China’s Dalian Wanda buy production company Legendary Entertainment for over US$3.5B in January, while Verizon acquired Yahoo for US$5B in July. And in the networking and social media space, Microsoft agreed to pay US$26.2B for the social network LinkedIn.
Figure 1: Technology and media M&A leaps forward
Technology + Media M&A, 2011-2016
Data Overview