The report below gives a good overview of the Winter 2023 M&A activity in the Technology, Media and Telecom Industry Sector. The technology companies in the US such as Apple, Alphabet, Netflix, and others, often categorized as the MAANGs, underperformed in 2022. The MAANG stocks have fallen significantly this year, and traded sideways in the last quarter of 2022, indicating an end to the 13-year bull run. The media industry is the central driving force for the overall Technology, Media, and Telecom (TMT) industry as there has been a consolidation of media and telecom companies in recent years. The global media industry was valued at $2.5 trillion in 2022 and is expected to grow at a CAGR of 4.6%, to reach $2.9 trillion by 2026, as per research published by PwC. The major segments impacting the growth of the Technology, Media & Telecom (TMT) industry in 2022 include artificial intelligence (AI), metaverse, quantum computing, fintech and gaming technologies. Retail industry is one of the growing verticals that is incorporating a variety of technologies, including cloud computing, big data analytics, DevOps, digital shops, and others. The gaming industry is expected to increase the growth of the live service platform sector. As per a S&P Global report, it is estimated that the in-game purchase revenue driving these live service platforms in the year 2021 was $128.3 billion. Furthermore, the rising need of automation and remote asset monitoring is expected to drive the growth of IoT technologies. The digital revolution and technology upgrade is expected to provide plenty of opportunities for businesses in the TMT sector.
Posted by Dan Vermeire.