Global tech, media and telecom M&A rocketed at the start of this year thanks to big hitting deals like Microsoft’s $68bn (£55.4bn) acquisition of Call of Duty maker Activision Blizzard.
The first half of this year featured 14 megadeals, with a combined deal value of about $226.8bn. Nonetheless, deal volume was lower during the first two quarters of 2022, totalling 677 deals, compared to a whopping 1,070 deals for the first half of 2021.
Crucially, the average deal size jumped 30 per cent, year over year, to $186m, one of the highest levels in years thanks to the likes of Elon Musk’s Twitter $44bn takeover dragging up averages.
Commenting on the outlook, PwC Technology Deal Partner Sundar Ramamurthy said: “While macroeconomic uncertainties pose a threat to dealmaking in the near term, more realistic valuations and a tepid IPO market coupled with strong cash positions of tech buyers will lead a bounce back in M&A.”L