In Q1’22, TMT deal volume fell significantly from the previous quarter, but deal value continued to climb. With mounting economic and geopolitical uncertainty, sentiment among deal makers became more cautious.
Overall deal volume dropped by 23.3 percent to 1,715 from 2,237 in Q4’21, while deal value increased 5.4 percent to $246.1 billion from $233.6 billion. Technology deals numbered 1,229 worth $118.7 billion, media deals 429 worth $119.7 billion, and telecom deals 57 worth $7.7 billion. (See the charts below for more data.)
Key trends in TMT in Q1’22 included:
- The biggest decline in deal volume was in telecom, with a 39 percent drop from Q4’21.
- Media deal value surged by 244 percent from the previous quarter largely due to Microsoft’s $68.7 billion bid for Activision-Blizzard.
- With games in the metaverse rising, video gaming was a deal magnet.
- PE deal value rose 53 percent as PE funds continue to buy software firms.
U.S. TMT activity by sector
Strategic* and PE TMT deals
Note: * includes $ SPAC value and SPAC volume
As the wave of uncertainty that swept deal makers in early 2022 subsides, they will likely monitor the ongoing adjustments in the valuation of publicly traded companies for buying opportunities. We expect an active Q2’22 for TMT deal making.
Our Q1’22 report analyzes the latest market trends and what may lie ahead—with deep dives on two topics:
- Semiconductors: Supply-chain shortages will spur M&A
- Video gaming: Deal makers get ready to play in the metaverse
Download the full report to uncover what is happening in these dynamic sectors, how deals are being done today—and why.