The report below gives a good overview of the Summer 2023 M&A activity in the Technology, Media and Telecom Industry Sector. Persistent economic challenges, geopolitical tensions, supply chain volatility, raw material shortages, semiconductor supply requirements, and regulatory frameworks continue to pose significant challenges for the technology industry. In response to soft consumer spending, low product demand, and declining market capitalization, tech companies are focused on increasing margins and revenues. To achieve this, they are prioritizing business process efficiency and heavily relying on intelligent automation. Cloud migration and the adoption of XaaS (Everything-as-a-Service) models are being embraced globally. According to a report by Forrester, global tech spending is projected to grow by 4.7% in 2023. Pressure from governments and shareholders to enhance transparency regarding environmental impact, tax payments, and carbon emissions reduction is driving industries to update their management software tools for real-time visibility, leading to the development of innovative technologies and new business models. Lower valuations are expected to drive increased M&A activity among tech companies, particularly in areas that leverage AI and machine learning. The enactment of the Digital Markets Law in Europe aims to promote a digital economy with fair competition, choice, innovation, and better-quality services at lower prices while curbing the power of Big Tech firms. Additionally, tech companies are striving to improve efficiency and drive innovation in other sectors like real estate, manufacturing, and retail. According to Statista, approximately $1.4 trillion is expected to be spent on developing technology-based communication services.
Posted by Dan Vermeire.