The current TMT landscape is digital and personal, constructed by each individual and delivered through personal devices.
In response, companies are reshaping business models to reach billions of individuals, often necessitating M&A.
When a TMT company makes a deal, tech capabilities improve, as do products and services. That’s what consumers told us in PwC’s global survey of consumer attitudes toward mergers and acquisitions.
Despite overall confidence in deals, trust in the combined entity can be more elusive. More than 70% of consumers told us they would be skeptical if a TMT company they trusted combined with one they didn’t trust.
TMT consumers are also largely skeptical about who a deal actually benefits. As a whole, respondents were more likely to say that M&As are a positive influence on the companies involved and their shareholders, as compared to its employees and customers—meaning, they feel that deals benefit the company more than them.
The good news? Less than 50% of respondents said they would take their business elsewhere. In fact, almost 70% of tech customers said deals are positive overall, along with 57% of telecom customers and 56% of media customers.
Keeping customers happy in times of change can be challenging, but it's also vital for long-term success. A company engaging in a merger or acquisition can take the appropriate steps to help realize the overall consumer benefits of the deal; for example, diversification of offerings, increased innovation and expansion of tech capabilities.
PwC has identified seven critical success factors to TMT deals that can help deliver on anticipated consumer value; factors that require well-thought-out strategies to implement. These strategies are particularly relevant to the kinds of cross-sector deals that characterize the sector during a time of consolidation, expansion of portfolio and capabilities and innovation.
Companies that follow this playbook are more likely to deliver value that exceeds expectations for all stakeholders, including their customers. Even in a recession.
Deals Principal, PwC US
TMT Deals Principal, PwC US
Deals Partner, PwC US