Global M&A trends in technology, media and telecommunications: 2026 outlook

Reinventing TMT for the AI era

Powerful new technological, consumer, and enterprise demand trends are reshaping technology, media and telecommunications (TMT), setting the stage for accelerated dealmaking in 2026 as companies reposition themselves for an increasingly dynamic and competitive landscape. TMT leaders enter the year with a growing conviction that the next wave of growth will be driven not by incremental efficiencies, but by bold strategic reinvention. Massive investments in AI infrastructure, evolving consumer segments and media consumption patterns, and the ongoing reshaping of telecom and media portfolios are redefining the strategic role of M&A across the TMT sectors.

The surge in capital expenditures for compute and data centre expansion is redrawing the boundaries of TMT M&A. Companies are pursuing alternative deal structures and financing vehicles, and cross-ecosystem partnerships to secure the infrastructure required for AI-enabled growth.

At the same time, media and entertainment players are racing to aggregate audiences through scale and premium intellectual property (IP) resulting in platform consolidation.

Telecom operators are accelerating portfolio separation by exiting non-core assets and sharpening their focus on scalable fibre, spectrum, and edge capabilities. These moves reflect a broader industry pivot towards capital efficiency and strategic clarity as operators prepare their networks for AI-era demands.

With capital increasingly directed towards AI, digital platforms, and next-generation networks, M&A activity is well-positioned to accelerate as businesses move to capture the opportunities reshaping TMT in 2026.

$5tn+

The potential funding required over the next five years for AI technologies including enabling infrastructure.

Estimates from multiple external sources suggest that between $5tn and $8tn could be required over the next five years to fund AI technologies and the infrastructure that enables them, including data centres, chips, networks, and new energy capacity. To put that in context, global M&A values totalled around $3.5tn in 2025, and the lower end of the AI spending range is roughly equivalent to the total value of TMT dealmaking over the past five years.

Spotlight on AI How AI is changing the shape of deals

The scale and persistence of investment required for AI infrastructure has necessitated complementing traditional acquisitions with joint ventures, minority investments, long-term offtake agreements, and infrastructure partnerships to support long-term growth and competitive positioning.

At the core of this shift is the capital intensity of AI. Supporting large-scale model training, inference, and enterprise deployment requires sustained investment in compute, data centres, and supporting infrastructure. In 2025, Microsoft, Amazon, and Alphabet each signalled very large capital expenditure plans of roughly $80bn, $100bn, and $80bn, respectively—with a significant share directed towards AI-related infrastructure such as the cloud and data centre capacity. Analyst forecasts point to continued elevated spending in 2026 as these companies build out compute and AI capabilities further. At this level of investment, organisations are focused on optimising capital deployment to rapidly scale while preserving balance sheet flexibility.

Transactions that historically may have taken the form of full acquisitions are often structured around asset-level financing co-investments and long-term capacity agreements, partnering with infrastructure and financial investors who fund the assets while technology companies secure long term access to these assets through contractual commitments. Recent transactions involving Meta, Oracle, and xAI illustrate how companies are securing access to compute and infrastructure. While these structures differ from traditional acquisitions, they serve similar strategic objectives: securing critical capabilities and shaping long-term competitive positioning.

These developments have contributed to the emergence of more circular investment dynamics within the AI ecosystem. Capital and long-term commitments increasingly circulate among a relatively small group of technology companies and strategic partners. Participants frequently occupy multiple roles across the value chain, acting as infrastructure developers, anchor customers, and capital partners. Investment in compute enables AI development and adoption, which in turn drives demand commitments, revenue generation, and reinvestment into additional capacity, thus reinforcing the investment cycle.

Oracle’s announcement of the approximately $300bn Stargate initiative with OpenAI illustrates this dynamic: OpenAI anchors long-term demand through compute commitments tied to model training and inference while Oracle invests in AI-optimised data centre infrastructure.

The scale of these arrangements has been supported by a broader, yet increasingly coordinated, set of capital providers. Sovereign wealth funds have become important participants in AI-related infrastructure investment, providing long-duration capital aligned with financial and strategic objectives. Abu Dhabi–based Mubadala and its AI platform are targeting approximately $100bn in AI-focused investments, and ADQ has committed $25bn to energy and data infrastructure supporting hyperscale deployment in the US. Other sovereign investors have also committed multi-billion-dollar allocations to global data centre and digital infrastructure platforms.

Geographically, the majority of announced AI infrastructure investment remains concentrated in the US, reflecting the presence of leading technology companies, established cloud ecosystems, and deep capital markets. While China and other regions continue to invest actively—often supported by state-backed capital—the US remains the primary arena of large-scale AI-related deal activity.

Looking ahead in 2026, M&A in the technology sector is expected to remain a critical strategic lever, albeit expressed through a broader range of transaction structures. Advances in model efficiency, changes in financing conditions, and shifts in corporate strategy are more likely to influence which companies transact and deal structures than to reduce overall deal activity. Data centre assets may change hands as portfolios are optimised, private equity participation may increase as capital costs evolve, and partnerships are likely to continue complementing traditional acquisitions. In the AI era, M&A remains central to strategy—re-imagined to support the capital intensity, scale, and flexibility required by companies and investors.

‘Hyperscalers are concentrating both investment and leadership bandwidth on AI, with the pursuit of more capable foundation models and market penetration dominating the strategic agenda. This focus will continue to drive deals in 2026 to finance infrastructure and secure strategic positions.’

Barry Jaber,Strategy&, Global Technology and Telecommunications Deals Leader, PwC UK

Key M&A themes for TMT in 2026

Take-private momentum builds into 2026

Several landmark take-private deals in 2025 have set the tone for 2026, including the largest sponsor-led take-private in history—the $55bn acquisition of Electronic Arts (EA) by a sovereign wealth and private equity-backed consortium. In addition to the EA deal, Dayforce agreed to a $12.3bn take-private by Thoma Bravo, and Swedish software-as-a-service provider Fortnox is being acquired by a consortium led by EQT and its largest shareholder, First Kraft.

Together, these transactions illustrate how private equity firms and sovereign wealth funds, armed with ample dry powder, are targeting established, category-leading platforms that they view as undervalued in the public markets. We may continue to see larger take-privates and dealmaking in 2026 as private equity and principal investors look for mature businesses with consistent sources of high revenue or opportunities to make inroads into growing sub-sectors within TMT. By taking these companies private, new owners aim to accelerate innovation and growth and enable multiyear value creation initiatives outside the constraints of quarterly earnings pressures.

Media and entertainment focus in the Middle East

The Middle East is emerging as a rising force in global media and entertainment, driven by national modernisation programs such as Saudi Arabia’s Vision 2030, which aims to diversify the economy, attract private sector participation in culture and entertainment, and position the country as a regional hub for arts, media, sports, and leisure. As the sector develops, investment and M&A are beginning to scale, with sovereign-backed funds, regional media groups, and global platforms acquiring content creators, broadcasters, sports and event management companies, and rights holders to establish larger positions in the global entertainment market. The region is increasingly shifting towards its goal of becoming a global hub for live events, sports IP, gaming, and digital distribution.

Sports remain a central pillar of this strategy. Middle East sovereign wealth continues to use sports and live entertainment as a strategic lever to drive tourism and global visibility. One example is the Saudi Pro League’s evolution from marquee signings into a multi-platform media property. Recent transactions highlight the redistribution of broadcast rights across both regional and global platforms, including podcast-native startup Thmanyah’s securing of exclusive broadcast rights for the Saudi Pro League and other sporting events, and international distribution through players such as DAZN+, Canal+, other digital-first platforms, and even Twitch streamer Zack Nani.

Together, these dynamics signal the Middle East’s transition into a globally competitive media and entertainment ecosystem. For investors, the combination of growing demand, available capital, supportive public policy, and consolidation potential is making the region an increasingly attractive destination for M&A.

From pause to pipeline: IPO activity builds again

IPO markets are reopening as macroeconomic conditions become more supportive. Global IPO proceeds increased by 45% from $118bn in 2024 to $172bn in 2025, fuelled by higher activity in financial services (including fintech) and technology stocks. The US recorded its best year for IPOs since 2021, while Asia Pacific continued to see the highest number of IPOs and reported an increase in proceeds of more than 50% year over year.

Against this improving backdrop, investor demand is most pronounced for technology assets with clear growth visibility and scale, particularly across semiconductors, AI hardware and the broader data centre build-out, where infrastructure demand is structural rather than cyclical. Signals of this trend are visible in US markets, where AI chip and memory companies are preparing for listings and recent US data centre real estate investment trust debuts that have priced well. This underscores renewed investor appetite for high-quality growth. With similar trends emerging in other markets, IPO activity, particularly in the technology sector, appears primed to accelerate further in 2026.

Global M&A volumes and values in 2025

Global TMT deal values rose 49% in 2025, while deal volumes remained flat. Technology accounted for the largest share of activity—representing 84% of deal volumes and 76% of deal values—and, as a result, trends in the technology sector continued to be the primary driver of overall TMT M&A. Technology’s outsized share was also evident in megadeal activity (transactions valued at more than $5bn), with 26 of TMT’s 32 megadeals in 2025 occurring in the technology sector and seven out of the top ten as shown in the table below:

^{Top ten TMT deals in 2025}
	^Buyer	^Target	^{Deal value ($bn)}	^Sector
¹	^Netflix	^{Warner Bros. Discovery}	^82.7	^{Entertainment and media}
²	^{PIF, Silver Lake and Affinity Partners}	^{Electronic Arts}	^55.0	^Technology
³	^{AI Infrastructure Partnership and investor group}	^{Aligned Data Centers}	^40.0	^Technology
⁴	^{Charter Communications}	^{Cox Communications}	^34.5	^{Telecommunications}
⁵	^Alphabet	^Wiz	^32.0	^Technology
⁶	^{Palo Alto Networks}	^{CyberArk Software}	^25.0	^Technology
⁷	^{Nippon Telegraph & Telephone Corp}	^{NTT Data Group}	^16.3	^{Telecommunications}
⁸	^{Meta Platforms}	^ScaleAI	^14.8	^Technology
⁹	^{Thoma Bravo}	^Dayforce	^12.3	^Technology
¹⁰	^IBM	^Confluent	^11.0	^Technology

_{Sources: LSEG, company press releases and PwC analysis}

AI’s growing role in technology M&A is underscored not only by the rise in technology megadeals but also by our analysis of 2025’s top corporate technology transactions, which found that 85% of the technology deals in the sample cited AI as part of the strategic rationale in their press releases.

Overall, global technology deal values rose by 50% in 2025, while deal volumes remained flat. Significant regional differences emerged: the Americas reported an 82% increase in technology deal values, driven by a high concentration of megadeals involving US targets. By contrast, Asia Pacific recorded a 16% increase in deal values, and Europe, the Middle East, and Africa (EMEA) saw a 15% decline.

In the media and entertainment sector, deal values surged 96%, largely reflecting the Warner Bros. Discovery transaction, while deal volumes declined 6% year over year. In telecommunications, deal values increased by 8%, with deal volumes remaining broadly flat.

“We’ve long believed streaming would need to consolidate, and the Warner Bros. Discovery sale process suggests that moment may finally be arriving. Looking forwards in 2026, we expect M&A to continue as platforms look to build, scale and secure compelling content that attracts and retains audiences.”

Bart Spiegel, Global Entertainment and Media Leader, PwC US

Global M&A trends in technology, media and telecommunications

Digital infrastructure providers “platformisation” play

Vertical integration strategies, such as those pursued by digital infrastructure providers including Dell Technologies, NetApp, and Supermicro, are poised to continue shaping the market in 2026. As these companies seek greater control over their value chains, they are accelerating investments in platform building. This consolidation reflects a broader shift as firms combine capabilities to deliver more comprehensive, end-to-end solutions.

Also, financial sponsors are showing heightened interest in the sector, particularly in opportunities that enable vertical integration and value chain consolidation. Recent transactions, including TPG’s $150m investment in Tessolve, highlight the expanding role of private capital and growing sponsor participation in the digital infrastructure ecosystem. Taken together, these dynamics suggest M&A activity in 2026 may remain strong.

From outsourcing to orchestration: IT services take centre stage

As investors converge on building integrated AI-enabled platforms, dealmaking in IT services is accelerating. Recent transactions such as Nippon Telegraph and NTT Data Group’s $16bn merger highlight a shift away from traditional outsourcing towards the orchestration of full-stack digital ecosystems. These ecosystems unify cloud, data, and AI capabilities into cohesive value propositions.

Both private equity and corporate buyers are pursuing consolidation and capability expansion to deliver resilient, scalable solutions with recurring revenue and automation at the core. As valuation discipline tightens, differentiation increasingly depends on depth of technical expertise, AI readiness, and customer integration.

Legacy players restructuring for scale and profitability

Consumer demands have accelerated consolidation in the streaming ecosystem, with platforms that offer compelling content and deep IP libraries best positioned to drive subscriber loyalty and pricing power over the foreseeable future. This dynamic underpins the Warner Bros. Discovery bidding process currently playing out between Netflix and Paramount Skydance. Beyond increased scale, the successful bidder would gain control of one of Hollywood’s most storied studios and the ability to monetise world-renowned IP across the broader entertainment ecosystem.

Sports as the cornerstone of content strategy

Sports has emerged as one of the most resilient and strategically valuable content categories, offering live engagement and audience stickiness at a time when consumers increasingly prioritise experiences over discretionary goods. Demand for premium sports broadcasts and related content continues to rise, and platforms that can monetise these events through subscriptions, advertising, and merchandise are best positioned to capture long-term value. In an increasingly crowded content landscape, live sports represent not just premium IP, but a strategic battleground for audience retention, advertising yield, and brand relevance.

This dynamic is attracting investor interest across team ownership, rights consolidation, and distribution innovation, as reflected in transactions such as the Los Angeles Lakers deal and growing private equity interest in college football conferences. Rising participation from Middle East investors is expected to further amplify global demand for premium sports assets, reinforcing sports’ role as a cornerstone of content strategy and an area in which deal activity is likely to remain through 2026.

The growing influence of content creators in marketing

As consumer demographics continue to evolve, so does the shift towards brand ambassadors and creator-led branding campaigns. The era of A-list celebrities promoting a wide array of products is giving way to a new generation of consumers who increasingly follow the recommendations of their favourite content creators and social media influencers. Brands are responding by reallocating marketing budgets towards social platforms and creator-driven channels, accelerating a broader shift in influence and value creation.

This evolution is driving increased M&A activity, particularly at the agency level. Additionally, as agencies with strong social and creator networks are becoming attractive acquisition targets, enabling traditional talent and advertising firms to expand their reach into these changing consumer segments. At the same time, brands are taking a more active role in content creation, embedding themselves directly into concepts and storylines. Traditional product placement is increasingly giving way to more deliberate, integrated campaigns that are woven into the narrative itself.

Two forces now define the telecommunications sector’s next chapter: the rise of the puretone telco and the rapid scaling of networks to meet AI-era demand. These dynamics, which we discussed in our 2025 midyear outlook, have since accelerated and will remain central to telecom dealmaking in 2026.

The rise of the puretone telco

Telco operators are restructuring portfolios to focus on core assets and business models, separating infrastructure layers (data centres, towers, and fibre) from retail operations to create a “puretone” model that optimises performance and attracts specialised capital. This trend accelerated in 2025, particularly in Europe, due to its market fragmentation and overlapping infrastructure, as operators executed targeted carveouts and partnership models that push the sector further away from vertically integrated conglomerates.

In April 2025, TIM announced the €700m (~$815m) sale of its Sparkle subsea cable business to the Italian Ministry of Economy and Finance and Retelit. This deal follows TIM’s 2024 sale of its NetCo business to KKR, as the company refines its portfolio to focus on domestic telecom and services. Similarly, Cellnex’s October 2025 sale of its Towerlink France edge data centre assets to Vauban Infrastructure Partners reflects its strategic concentration on towers and wireless infrastructure. In Germany, Deutsche Telekom continues to streamline fibre holdings through joint venture vehicles and new open-access partnerships such as the one with Deutsche GigaNetz, enabling infrastructure, wholesale, and retail verticals to each scale through dedicated platforms rather than fully integrated ownership.

Collectively, these moves promote capital efficiency, balance sheet flexibility, and reinvestment into emerging areas such as cloud, AI-related infrastructure, and enterprise connectivity. The result is a new telecom archetype: asset-light, partnership-driven, and strategically pure, existing alongside infrastructure owners and co-funded platforms in a diversified market structure. In 2026, this puretone model will continue to transform telcos from network operators into orchestrators of digital infrastructure ecosystems. This evolution aligns with the demands of AI-era networks.

Scaling the network for the AI era

The surge in data traffic, AI-driven workloads, and enterprise connectivity needs is pushing operators to quickly modernise networks. Recent transactions highlight the shift towards scalable, high-performance infrastructure ecosystems, where spectrum, fibre, and edge assets are consolidated to support faster innovation and national competitiveness.

In the US, AT&T’s proposed acquisition of spectrum licenses from EchoStar announced in August 2025, T-Mobile’s acquisition of UScellular which completed in August 2025, and KKR and T-Mobile’s Metronet joint venture which completed in July 2025 all reflect moves to deepen coverage, densify networks, and enable 5G–fibre convergence. These transactions are less about balance sheet reshuffling and more about building the scale, reach, and technology foundation required for AI-era connectivity and long-term service differentiation.

M&A outlook for technology, media, and telecommunications in 2026

AI-enabled reinvention, evolving consumer and enterprise behaviour, and the restructuring of telecom and media portfolios are reshaping the technology, media, and telecommunications sectors in 2026 and redefining how companies use M&A to compete. As platform convergence and digital infrastructure increasingly confer strategic advantage, organisations are reassessing which capabilities to build, buy, or access through partnerships. Those that proactively prioritise AI, modernise technology stacks, rethink audience engagement, and make deliberate ownership and partnership choices are poised for success. TMT leaders who act decisively—through acquisitions, partnerships, or portfolio realignment—will be best positioned to capture the momentum of an industry on the cusp of its next chapter.

Our commentary on M&A trends is based on data from industry-recognised sources and PwC’s independent research and analysis. Certain adjustments may have been made to source information to align with PwC’s industry classifications. All dollar amounts are in US dollars. Megadeals are defined as transactions valued greater than $5bn.

Global technology, media and telecommunications deal value and volume data referenced in this publication are based on officially announced transactions, excluding rumoured and withdrawn transactions, as provided by the London Stock Exchange Group (LSEG). Data is as of 31 December 2025 and was accessed between 1 and 8 January 2026. 2025e is a PwC estimate to improve year-on-year comparability, adjusting December 2025 for a reporting lag. 2025e does not represent a PwC forecast. Figures may not sum precisely due to rounding.

Data on global IPO issuances is based on data provided by S&P Global Market Intelligence LLC, as of 31 December 2025 and was accessed on 16 January 2026.

External estimates of future investment required to fund AI technologies and the enabling infrastructure have been obtained from a range of sources, including BlackRock’s 2026 Investment Outlook dated 2 December 2025 and KKR’s Investment Insights article dated November 2025, accessed on 12 January 2026.

https://www.blackrock.com/corporate/insights/blackrock-investment-institute/publications/outlook

https://www.kkr.com/insights/ai-infrastructure

Barry Jaber is PwC’s global technology and telecommunications deals leader and a leading practitioner with Strategy&, PwC’s strategy consulting business. He is a partner with PwC UK. Bart Spiegel is PwC’s global entertainment and media leader and a deals partner with PwC US.

 The authors would like to thank the following colleagues from across PwC and Strategy&’s global network for their insights and perspectives that informed this analysis: Abhishek Abhishek, Brian Burns, Charles Chang, Florian Gröne, Justin Ingram, Alessandro Maglione, Victor Myers, Andy Ogrins, Caleb Park, Alistair Philpott, David Samuel, Alex Schmitt, Meredith Strong, and Nina Venkatesh.

Global M&A trends in technology, media, and telecommunications