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Making moves at the speed of disruption
In the wake of post-election clarity and significant policy shifts, the media and telecommunications sectors showed remarkable resilience throughout the first half of 2025. From December through mid-May, transaction value surpassed those recorded during the same period in 2024, demonstrating a calculated and tactical approach to dealmaking despite political uncertainty.
- Technological integration and innovation fuel acquisitions. The dominance of artificial intelligence, data and analytics and technological innovation within the advertising space is compelling traditional creative-led agencies, rooted in creative expertise, to expand their scale and embrace data-driven marketing capabilities. For example, the proposed $13.25 billion all-stock acquisition of Interpublic Group (IPG) by Omnicom Group (OMC) promises to unite two titans of the industry, creating a full-service solution for advertising agency clients at scale. This transaction may encourage other market players to seek strategic alternatives to better compete.
- As consumers increasingly prioritize immersive and experiential entertainment, the industry has witnessed remarkable milestones. Mission: Impossible ––The Final Reckoning marked the best opening weekend for the series, amassing an impressive $77 million over the Memorial Day weekend. Beyoncé's Cowboy Carter Tour boasts a 94% sell-out rate and is projected to generate a staggering $300 million in revenue. Universal recently opened Epic Universe, the fourth theme park at Universal Orlando Resort which has already generated a significant buzz. Dealmakers should heed consumer preferences and discretionary spending trends and strategically allocate their capital to harness emerging opportunities in experiential entertainment.
- Mobile gaming remains at the forefront, with companies aiming to expand portfolios and user bases through strategic acquisitions. Notably, Scopely acquired Niantic’s gaming division for $3.5 billion and Tripledot Studios purchased AppLovin’s gaming division for $800 million. Apple also made its first foray into game studio ownership by acquiring indie developer RAC7, known for the Apple Arcade hit Sneaky Sasquatch.
- Strategic consolidations continue to drive activity in the sector. Recent transaction announcements illustrate a shift toward scale-driven efficiency –– but also a need to future-proof against shifting consumer behavior and rising operational costs. Examples include Charter’s merger with Cox (creating the second-largest broadband provider after Comcast) and Disney’s merger with sports-centric streamer Fubo that aims to combine Hulu and Live TV service with Fubo's virtual multichannel video programming distributor (vMVPD) platform.
Note: The source used in the 2025 midyear outlook is S&P Global Market Intelligence.
*Note: This excludes the Charter-Cox deal announced on May 16, 2025.
Looking ahead
Over the next six months, the US media and telecom sector is poised for a dynamic period of M&A, propelled by strategic realignments and cross-industry acquisitions. The sector also continues to monitor the role of AI, as it’s poised to redefine how creators, publishers and other stakeholders generate and enhance value within their respective domains.
Summer 2025 is shaping up to be the largest film slate following the disruptions of the COVID-19 pandemic. Sector leaders should closely observe box office dynamics that feature high-profile releases including Superman, Jurassic World: Rebirth and The Fantastic Four. If the US box office bounces back, expect a shake-up in how both new and seasoned media players invest capital.
In the video game industry, Grand Theft Auto’s delay raises the question of whether game publishers are adjusting release schedules to meet holiday demand — potentially triggering a surge in new rollouts aimed at capturing consumer interest. The eagerly awaited arrival of the Nintendo Switch 2 in June 2025 further underscores the consumer interest within the gaming industry, as evidenced by the swift sellout of pre-orders across US retailers.
Comcast’s planned spin-off of its cable networks under the new Versant brand, expected by late 2025, may prompt competitors to pursue strategic alternatives — whether joint ventures, alliances or other moves to gain scale. At the same time, billions of advertising dollars continue to leak out of the traditional linear ecosystem. This trend highlights the ongoing shift of advertising dollars from traditional linear platforms to innovative, interactive channels that focus on user-generated content.
“Media and telecom leaders aren’t waiting on stability — they’re scaling with intent, using tech-forward deals to reimagine growth and stay ahead of disruption and regulation.”
Bart Spiegel,Partner, Media & Entertainment, PwC USThe bottom line
The entertainment and media marketplace continues to navigate considerable uncertainty. Anticipated regulatory reforms under the current administration have yet to materialize, while the looming threat of tariffs persists. Consequently, dealmakers have adopted a careful yet strategic approach, poised to seize opportunities as favorable conditions emerge. Over the next six months, the prudent allocation of capital will be paramount, with strategies extending beyond traditional mergers and acquisitions.
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Lori Driscoll
Technology, Media and Telecommunications US and Global Consulting Leader, PwC US
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