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Conditions for media and telecom favor a stellar start to the 2025 M&A market
It’s been a long time since we’ve seen so many favorable variables align in anticipation of a robust 2025 mergers and acquisitions (M&A) market. Advances in AI, dry powder at an all-time high, changing regulatory bodies and transformative M&A already announced should provoke media and telecom to move aggressively in 2025.
Deal activity in media and telecommunications saw a moderate rebound in the second half of 2024. While interest in the sector remained strong, uncertainty around the details of regulatory changes under a new administration led many industry players to proceed with caution. Nonetheless, deal value and volume increased compared to the same period in 2023, driven largely by megadeals.
- Telecommunications companies maintained their focus on 5G infrastructure, fiber network enhancements and digital transformation through strategic M&A, aiming to meet the growing consumer demand for seamless connectivity and data-driven services aided by the Rural Digital Opportunity Fund and the Broadband Equity, Access and Deployment Program. Verizon’s $21 billion acquisition of Frontier Communications in September underscored its strategic drive to integrate operations and expand its fiber footprint, reinforcing the company’s position in the connectivity market.
- The ongoing consumer shift from traditional cable to streaming services remains a key focus, exemplified by the Skydance and Paramount merger and Comcast's recent announcement that it is spinning off its cable channels. This evolving landscape is likely to drive increased interest in transformative deals as companies seek to adapt and strengthen their positions in the market. Non -traditional media, including user-generated content (UGC) on social media platforms and podcasts, demonstrated their influence in shaping public opinion and voter behavior during the election. These resources have emerged as powerful tools for amplifying diverse voices, providing an impactful outlet with direct channels to bypass traditional media.
- Media and telecommunications companies are harnessing immersive experiences in sports, concerts and IP-driven content to deepen consumer engagement. By combining leading-edge technology with compelling content, companies are creating more personalized and engaging experiences, reshaping audience interaction, driving loyalty and unlocking new revenue streams in a highly competitive landscape.
Note: The primary M&A data source used in the 2025 outlook is S&P Capital IQ.
Strategic thinking
Portfolio optimization has been a defining theme in media and telecommunications M&A, with companies reshaping their asset portfolios to adapt to shifting market dynamics and consumer behaviors. By divesting non-core assets, scaling strategic verticals through targeted acquisitions and reallocating capital toward transformative initiatives like AI and immersive media experiences, industry players are positioning themselves for growth, agility and long-term relevance.
President-elect Donald Trump's appointment of Brendan Carr as FCC chair and the anticipation of Lina Khan’s FTC replacement suggest a return to a pro-deregulation agenda. This move could accelerate consolidation, empowering dominant players to expand their market control. For example, we expect the new FCC regime will abandon net neutrality and, although the immediate effects may not be apparent, it does offer incremental evidence of further deregulation. As a result, we expect a robust 2025 M&A market due to pent-up demand which may have been sidelined due to regulatory concerns.
“We anticipate 2025 will see a robust M&A market due to significant dry powder, an evolving ecosystem and pent-up demand that has been sidelined due to regulatory concerns.”
The bottom line
In anticipation of a shifting regulatory environment, we expect a rebound of M&A activity in the media and telecommunications sectors. Those who stay agile and adapt to market trends and evolving consumer preferences will continue to position themselves for significant growth.
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Lori Driscoll
Technology, Media and Telecommunications US and Global Consulting Leader, PwC US
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