M&A trends in tech, media, and telecom

Despite macroeconomic tremors and geopolitical noise in the second quarter of 2025 (Q2’25), the technology, media, and telecom (TMT) sector demonstrated a resilient and strategically focused mergers and acquisitions (M&A) environment. While overall deal volume declined modestly quarter-over-quarter (QoQ), overall deal value remained stable, with strategic value reaching its highest level since Q2’22. The quarter reflects a market that is increasingly selective, disciplined, and driven by long-term value creation, thanks to a convergence of AI-led innovation, infrastructure consolidation, and a recalibration of private equity (PE) strategies in response to tightening capital markets and regulatory scrutiny.^1 2 3

Q2’25 unfolded against a backdrop of cautious optimism. The Federal Reserve held rates steady, inflation showed signs of moderation, and capital markets began to stabilize following tariff-induced volatility in the first half of the year. Strategic acquirers leaned into AI-native capabilities, cybersecurity, and data infrastructure, while PE firms recalibrated toward bolt-on and carve-out deals amid a more challenging fundraising environment. Notably, dealmakers continued to prioritize integration readiness and value capture planning earlier in the deal lifecycle—a trend accelerated by GenAI adoption across diligence and postmerger integration workflows.^4 5 6

In the technology subsector, there was a clear shift from prioritizing revenue and customer acquisition toward acquiring AI talent and infrastructure. Companies are absorbing talent, and investing in data centers and storage, rather than just acquiring companies to remain competitive in AI and agentic AI. In media and telecom, ongoing consolidation efforts remain likely as companies seek to compete with streaming services and capture growth with wireless-fiber convergence, highlighted by the Charter and Cox merger and the AT&T/Lumen transaction. In PE, firms now consider the AI-readiness of potential acquisitions to ensure sustainability in an AI-driven market, reflecting AI’s growing influence on business models.

In this report, we dissect the quarter’s key M&A metrics, spotlight sector-specific deal themes, and offer forward-looking insights for dealmakers navigating the evolving TMT landscape.

The second half of 2025 is poised to deliver steady M&A activity in the TMT sector. While macroeconomic uncertainty and regulatory scrutiny remain headwinds, the underlying fundamentals—AI and emerging agentic AI adoption, digital infrastructure demand, and strategic realignment—continue to support a healthy deal pipeline.^1 2

Strategic acquirers are expected to double down on AI talent and capabilities, cybersecurity, and vertical integration plays to expand offering portfolio capabilities and secure critical resources. PE firms, facing pressure to return capital, will likely pursue creative structures such as minority recaps, GP-led secondaries, and bolt-ons in AI-adjacent verticals. Deal pacing may remain uneven, but the quality of transactions is expected to improve as buyers focus on integration readiness and value realization.^3 5 6