The report below gives a good overview of the Spring 2023 M&A activity in the Technology, Media and Telecom Industry Sector. Public- and private-market valuations of companies in the Technology, Media, and Telecommunications (TMT) industry witnessed an upsurge during the pandemic. However, in 2022 the industry faced a range of headwinds which led to an overall decrease in company valuations. Increased layoffs in the Technology sector due to rising interest rates, declining consumer demand and the collapse of the Silicon Valley Bank (SVB) whose client base largely included technology companies, were some of the major factors that impacted the growth of the TMT industry. Although growth in the demand for AI-powered technologies and sports rights among streamers, higher advertising revenues for video-on-demand companies, and higher investments in enterprise edge computing and virtual reality technologies are expected to fuel the growth of this industry in the coming quarters, notable headwinds such as stubborn inflation, rising interest rates, and geopolitical unrest are likely to continue.
Posted by Dan Vermeire.