TMT sector game changers

A biannual report highlighting new accounting and reporting trends affecting the Technology, Media and Telecommunications (TMT) industries.

December 2018 edition: Key highlights

Despite the headwinds of rising interest rates and uncertainty surrounding the impact of the trade war, Tech M&A grew at a robust pace after the summer slowdown: Q3 2018 deals, driven by the acquisition of software companies, more than doubled in value over Q2 2018. 2018 year-to-date continues to outpace 2017. Q3 2018 alone saw 485 deals valued at $66.4B. Media and Telecom M&A continued to be active as well with 260 deals in Q3 2018 valued at $19B. Deal volume grew 34% over Q2 2018, led by the Advertising & Marketing and Internet & Information sub-sectors, while deal value declined 58% largely due to the notable absence of any Q3 2018 Media and Telecom mega deals.


The 2018 AICPA National Conference on Current SEC and PCAOB Developments took place December 10-12, 2018.  The conference featured representatives from regulatory and standard-setting bodies, along with auditors, preparers, securities counsel, and industry experts. Consistent with prior years, the theme of the conference focused on collaboration and transparency. 

The new leases standard is effective for calendar year-end public business entities beginning on January 1, 2019. An October 2018 PwC survey of more than 450 executives revealed that 76% of public companies are more than halfway done with their implementation of ASC 842, while only 4% reported that their implementation was completed. Of those not yet complete with the implementation, one of the most frequently cited remaining hurdles relate to system readiness. Respondents indicated notable expectations gaps between what they expected from their system’s capabilities and current state, with many solution providers still pushing out enhancements and roadmap updates to achieve functionality promises.

Identifying ways to digitally enable finance and accounting functions is at the top of the priority list for a large number of finance organizations. Robotic process automation (RPA) has certainly been a hot topic, with individuals from each facet of the finance function eager to see if RPA can truly revolutionize their existing business processes and unlock capacity in the organization. For those that are unfamiliar with RPA, it is the application of enabling technologies to create a ‘bot’ to operate software applications and ‘mimic’ the interaction of users. RPA technologies are especially effective at replacing a number of human activities, read our report to learn more.

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Kevin Healy

US Technology, Media & Telecommunications Assurance Leader, PwC US

Tel: +1 (408) 817 3834

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