Global TMT transactions fall 46pc in first half, bereft of ‘megadeals’
Tencent’s US$8.6 billion acquisition of Supercell the biggest recorded in the period. 1,363 deals made, worth total of US$223.1 billion
Global mergers and acquisitions in the combined technology, media and telecommunications, or TMT, sector saw a sharp 46 per cent decline in value to US$223.1 billion in the first half of this year, dampened by political uncertainty in Europe and fear of increased US interest rates.
There were 1,363 such deals made in the first six months of the year, down from 1,580 transactions with a total value of US$382.3 billion in the same period last year, according to a report released on Monday by Mergermarket.
The research firm pointed out that no “megadeals” worth US$10 billion or more were recorded in the first half, compared to a record nine transactions of that magnitude a year earlier.
Most of the upcoming transactions in the technology segment are expected to remain small, while there may be fewer telecommunications-related deals.
“Many Technology companies are at the beginning of their innovation life cycle, and as a consequence less mature businesses are coming to market commanding smaller price tags,” Mergermarket said.
Many Technology companies are at the beginning of their innovation life cycle, and as a consequence less mature businesses are coming to market commanding smaller price tags
It was upbeat about “a wave of consolidation” in the media segment during the second half of this year, led by major players in both China and the United States said to be targeting media content companies.