AI, infrastructure, and portfolio shaping: The TMT playbook
The technology, media, and telecom (TMT) sector maintained its resilience in the third quarter of 2025 (Q3’25), with AI-driven innovation, infrastructure consolidation, and disciplined dealmaking shaping the landscape.
TMT navigated persistent economic and geopolitical pressures while delivering a surge in deal activity,—including the largest take‑private on record.1 Companies managed tariff shifts, regulatory hurdles, and volatile markets yet continued to invest in AI and digital infrastructure. Corporate buyers and private equity (PE) firms emphasized disciplined execution and early integration planning, and overall, the market remained selective and focused on strategic priorities.2
This resilience played out against a backdrop of uncertainty. Inflation edged above the Fed’s 2 percent target, driven by tariffs and uneven consumer spending. A late‑quarter government shutdown disrupted official data, forcing reliance on private indicators. Each week of closure trimmed GDP by an estimated 0.2 percentage points, while the Fed—operating with limited visibility—signaled a cautious path toward rate cuts later in the year.
Within TMT, AI dominated strategy, shaping technology M&A and influencing media and telecom moves. Despite a slight dip in overall volume, fundamentals held strong, supported by transformative, high‑profile transactions as valuations stayed high on expectations of AI‑led transformation.2 3 In tech, buyers shifted from customer acquisition to securing AI talent, data centers, and scalable platforms. In media, companies consolidated to expand digital reach while investors turned their attention to sports as an asset class. In telecom, operators accelerated fiber and spectrum investments to future‑proof networks.
