M&A in the TMT Sector | Article | Telecom, Media & Technology

M&A in the TMT Sector

The trends driving consolidation in TMT and the role of regulation

Telecom, Media & Technology (TMT)

March 23, 2015

Tablets and Cellphones

Last year saw a significant increase in the level of M&A activity in the TMT sector and expectations are high for a repeat in 2015. The advancements in technology and cheap finance are driving deal making, especially in the telecoms and technology space where convergence is leading to a plethora of new types of deals. At the same time, there is widespread interest in the role that regulation will play in these combinations.

Global Telecom Media & Technology (TMT) M&A saw deals worth $296 billion in 2014. Among the three sub-sectors, Technology led the sector in both the volume and value of deals, recording 479 deals valued at $166 billion and contributing 56% of the total value of TMT M&A in 2014. In addition to a surge in Technology M&A, 2014 also witnessed a notable trend in the convergence of Technology, Telecoms and Media into media conglomerates.

Against this backdrop, FTI Consulting in conjunction with TMT Finance surveyed the senior executives and advisors working in the TMT sector in order to establish the key drivers of TMT M&A deals in the coming year.

68% of those asked believe that mobile Telco consolidation – with a move from four to three operators – will strongly feature in M&A activity in the TMT sector this year.

Regulatory scrutiny is listed as the #1 barrier to doing more deals in TMT.

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