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

Semiconductors and AI infrastructure move to the front

Semiconductor M&A is being shaped by the bottlenecks created by AI infrastructure demand. Buyers are targeting the components that determine how efficiently AI systems scale, including optical connectivity, power management, timing, and high-speed interconnect. The logic is shifting from chip exposure alone to control of the silicon stack that supports AI data centres, networking, and accelerated compute.

Recent US transactions illustrate this shift. Analog Devices’ proposed agreement to acquire Empower Semiconductor for $1.5bn expands its position in high-density, energy-efficient power delivery for AI compute systems. SiTime’s proposed acquisition of Renesas’ timing business for $1.5bn adds clocking capabilities used in data centre, networking, and communications applications. Together, these deals point to growing demand for the less visible but increasingly critical components that make AI infrastructure work.

Asia Pacific is also investing behind the same theme, although often through strategic funding and industrial policy rather than conventional M&A. In Japan, Rapidus is moving from R&D towards its target of mass production of 2nm logic semiconductors by 2027, supported by funding from the Japanese government and several private sector companies. That model reflects a broader regional focus on building domestic AI infrastructure capacity and advanced manufacturing capability rather than relying only on acquisitions to secure position.

Software M&A: targeted activity around defensible platforms

Software M&A has become more targeted. Zendesk’s acquisition of Forethought reflects continued demand for AI-enabled customer support automation, while IBM’s acquisition of Confluent and Palo Alto Networks’ acquisition of Chronosphere point to buyer interest in data infrastructure and platforms that support AI-enabled enterprise operations.

As discussed earlier, buyers are applying a higher bar to software assets. Deals are more likely to advance where targets strengthen AI enablement, workflow automation, data integration, or security.

Private equity capital rotates towards AI-enabling layers

Private equity capital is rotating rather than retreating. Sponsors are underwriting fewer software assets as they assess exposure to AI disruption, pricing pressure, and workflow automation. However, as noted above, capital is still moving towards parts of technology that help enterprises adopt and scale AI.

That is broadening sponsor interest across AI-enabling layers, including IT services, semiconductors, and equipment. These assets may not always command the same headline valuations as frontier AI platforms, but they reflect the demand for implementation, compute, and infrastructure capabilities. 

Through the second half of 2026, private equity activity is likely to remain concentrated in assets that either provide scaled AI relevance or help companies operationalise AI at scale. That includes implementation capabilities, infrastructure roll-ups, and targeted tuck-ins that fill capability gaps in platforms exposed to AI-driven change.

Scale resets the streaming playbook

The proposed acquisition of Warner Bros. Discovery by Paramount Skydance at a $110bn enterprise value is prompting media companies to reassess the strategic value of their content libraries, franchises, and distribution platforms. Legacy studio libraries, premium cable brands, and franchise-driven IP are back in focus as buyers look for assets that can support streaming scale, cross-platform monetisation, and durable audience engagement.

For mid-tier players, the strategic implications are immediate. Streaming consolidation rewards scale, but scale is no longer measured only by subscriber numbers. Companies are also looking at how IP can be monetised across streaming, gaming, licensing, live experiences, advertising, and commerce. That is leading to more licensing arrangements, strategic partnerships, bundling strategies, and portfolio reviews as media owners look to improve cash flow and surface value. The recent announcement of Fox’s $22bn acquisition of Roku highlights the growing importance of ad-supported platforms in the streaming ecosystem. As media companies look beyond subscriber growth, connected-TV distribution, advertising technology and audience data are becoming more central to how streaming scale is built and monetised.  

The capital behind this shift is coming from multiple directions: technology platforms seeking deeper engagement ecosystems, private equity firms attracted to durable IP cash flows, and international investors looking at premium content and sports rights as long-duration strategic assets. That broader buyer universe should support further consolidation, partnerships, and portfolio repositioning across entertainment and media.

Why GTA VI matters beyond gaming

As discussed earlier, gaming is increasingly competing with streaming for consumer attention. The anticipated release of GTA VI in November 2026 could test how far premium gaming IP can reshape consumer engagement, pricing, and monetisation. Several large media players are already expanding further into gaming and interactive experiences, reflecting the growing importance of immersive engagement alongside traditional streaming and filmed content. Adjacent businesses, including in-game advertising, creator tools, payment systems, live-service capabilities, and digital commerce platforms, may become more attractive as media, gaming, and technology continue to converge. As pricing and monetisation models keep evolving, companies may need to use M&A, partnerships, and capability investments to consolidate, strategically reposition, or invest to stay ahead of a competitive landscape that does not stand still.

From puretone portfolios to AI-ready networks

The puretone telco theme discussed in our prior outlooks remains relevant. Operators are continuing to sharpen portfolios, separate infrastructure from services where it creates value, and use partnerships or joint ventures to bring in capital without overextending balance sheets. Recent examples include Millicom’s acquisition of Telefónica’s Chile business and the Columbian state’s remaining stake in Coltel, both of which support the company’s focus on core Latin American markets. MTN’s proposed take-private of IHS Towers points to continued infrastructure delayering, while other tower deals illustrate ongoing capital recycling across European tower portfolios.  

A newer dynamic is now emerging: the fibre build-out phase is giving way to a more disciplined operating phase. As PwC’s 2026 telecoms outlook discusses, the next chapter for fibre operators is about financing discipline, consolidation, integration, and the ability to convert network coverage into paying customers at scale.

That is showing up in three ways. First, large operators are consolidating around market-leading fibre platforms. Second, joint venture structures are helping operators expand networks by bringing in financial investors to help fund the build-out, as seen in T-Mobile’s agreement to form a strategic fibre joint venture with Oak Hill Capital. Third, mid-market consolidation is accelerating as buyers prioritise regional density and operating scale over footprint expansion. Nexfibre’s proposed $2.7bn acquisition of an alternative fibre provider, illustrates this trend.  

The common thread is capital discipline as investors are increasingly focused on penetration, utilisation, and returns, not just homes passed.

At the same time, network architecture is being reshaped for AI-era workloads. AI is changing traffic patterns, increasing demand for high-capacity connections between data centres, faster network connectivity, and more flexible network infrastructure. That is pushing telcos to think beyond traditional connectivity and towards programmable, on-demand infrastructure that can serve hyperscalers, enterprises, and AI-enabled services.

Lumen’s announced $475m acquisition of Alkira, a cloud-native, carrier-agnostic networking platform, illustrates the change taking place. The deal pairs Lumen’s US fiber backbone with Alkira’s control plane to support programmable, consumption-based enterprise networking for the AI-era.  

This reflects a broader shift: AI is moving from pilots into operational network infrastructure, pushing telcos to build programmable platforms that can deliver outcomes at scale rather than connectivity alone. PwC’s Global Infrastructure Outlook 2025–50 points to the same dynamic. Data centre spending is expected to surge in the near term before moderating, while investment in digital networks is projected to rise more steadily as AI, cloud, and digital services create sustained demand for connectivity.

For dealmakers, the next phase of telecom M&A will be defined by those that can assemble the right network assets, partnerships, and operating capabilities to support an AI-enabled digital infrastructure ecosystem.

Our commentary on M&A trends is based on the sources noted below, together with PwC’s independent research and analysis. Certain adjustments may have been made to source data to align with PwC’s industry classifications. All deal value amounts are in US dollars, unless otherwise noted. Megadeals are defined as transactions valued at more 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, through 31 May 2026, as provided by the London Stock Exchange Group (LSEG). Data was accessed between 29 May and 2 June 2026. 

2026e is a PwC estimate based on the first five months of 2026. May 2026 data has been adjusted to reflect a reporting lag and the five-month period has been extrapolated to a full-year estimate to improve year-on-year comparability. Certain large AI-related investments that were announced during the first half of 2026 and considered non-recurring for estimation purposes have been excluded from the extrapolation and 2026e estimate to avoid overstating full-year deal value. 2026e does not represent a PwC forecast.  

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. He is a deals partner with PwC US. 

The authors would like to thank the following colleagues for their contributions: Florian Groene, Justin Ingram, Sanjna Jain, Victor Myers, Caleb Park, Alex Schmitt, and Nina Venkatesh.