Insight

Technology, media, and telecom M&A comes back down to earth

After soaring in 2021, TMT deal making lost some altitude in Q1’22

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:

Download the full report to uncover what is happening in these dynamic sectors, how deals are being done today—and why.

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Chad Seiler

Chad Seiler

Partner, Deal Advisory, KPMG US

+1 408-367-7603
Alex Paik

Alex Paik

Partner, Advisory, Financial Due Diligence, KPMG US

+1 408-367-7658
Joshua R. Potter

Joshua R. Potter

Partner, Advisory, KPMG LLP

+1 415-963-7355
Phil Wong

Phil Wong

Principal, Advisory, Technology Industry Strategy, KPMG US

+1 617-899-8999
Greg Corlis

Greg Corlis

Internet of Things Leader, KPMG US

+1 404-398-4422
Scott Purdy

Scott Purdy

National Media Industry Leader, KPMG US

+1 212-954-4207
Paul Harris

Paul Harris

Principal, Advisory, Financial Due Diligence, KPMG LLP

+1 212-872-4494
Roderick Moon

Roderick Moon

Managing Director, KPMG Corporate Finance LLC, KPMG US

+1 212-954-5834
David Creamer

David Creamer

Managing Director, Corporate Finance, KPMG US

+1 408-367-7064