Blog Author

Joe Anto

E: janto@pcecompanies.com

Follow me: LinkedIn

Industry Trends

AI, Cybersecurity, and CEO Optimism Fuel 2024 Surge

Tech M&A is set for a 2024 rebound, driven by increased demand for AI and cybersecurity. Geopolitical tensions and regulatory scrutiny pose challenges. According to the October EY CEO Outlook Survey, divestitures and businesses adapting to rising interest rates are expected to drive tech M&A, with 75% of global tech CEOs planning increased acquisitions. 1

Warner Bros, Discovery and Paramount Global in Talks for Strategic Merger

Warner Bros, Discovery and Paramount Global are in early-stage merger discussions, led by their respective CEOs. The aim is to consolidate their TV, film, sports, and streaming assets to better compete with industry leaders like Netflix and Disney. WBD's market cap of $28.4 billion is higher than Paramount's $10.3 billion despite greater debt. This merger could significantly shift the media landscape by pooling high-value franchises and networks from both entities.2

Smaller Cities Outshine Silicon Valley in Talent Migration

Tech hubs, including Silicon Valley, see a decline in tech workers of nearly 1,400, while cities like Dallas, Austin, and Houston gain significantly boasting 30,000 during the same period. The rise of local tech ecosystems and increased tech hiring by non-tech firms have contributed to this shift. This change in the nature of tech jobs shows favor towards diverse, fast-growing cities, challenging the dominance of established tech hubs.3

Tech's Innovation Wave

In a rapidly evolving tech landscape, the surge of generative AI highlighted in a McKinsey report, emphasizes the industry's dynamic nature, with investments exceeding $1 trillion. This transformative innovation reshapes business models and job landscapes and raises ethical considerations. Emerging technologies like AI, blockchain, and IoT play crucial roles, influencing global markets. Continuous innovation remains imperative for relevance in this ever-changing landscape.4

Media Transformation into 2024

Large-scale transactions reshaped the media landscape in 2023, from Microsoft's $68.7 billion acquisition of Activision Blizzard to Disney's consolidation of Disney+ and Hulu. The impact of these deals reverberates, setting the stage for transformative trends in 2024. Antitrust enforcement, middle market consolidation, interest rate dynamics, and shifts from public to private ownership are key forces shaping the industry.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Activision Blizzard, Inc.
  • Microsoft Corporation
  • $79,590.14
  • VMware, Inc.
  • Broadcom Inc.
  • $72,967.49
  • DISH Network Corporation
  • EchoStar Corporation
  • $26,894.40
  • Adenza Group, Inc.
  • Nasdaq, Inc.
  • $10,700.73
  • National Instruments Corporation
  • Emerson Electric Co.
  • $8,626.98
  • New Relic, Inc.
  • TPG Capital, L.P.; Francisco Partners Management, L.P.
  • $7,054.24
  • Guidehouse 
  • Bain Capital Private Equity, LP
  • $5,300.00
  • Imperva, Inc.
  • Thales S.A.
  • $3,600.00
  • Simon & Schuster, Inc.
  • KKR & Co. Inc.
  • $1,620.00
  • Avid Technology, Inc.
  • Symphony Technology Group, LLC
  • $1,466.16

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Northern Star Holdings, Inc.
  • Hubbell Power Systems, Inc.
  • $1,100.00
  • Loom, Inc.
  • Atlassian Corporation
  • $975.00
  • SADA Systems, Inc.
  • Insight Enterprises, Inc.
  • $800.00
  • The Burgiss Group, LLC
  • MSCI Inc. 
  • $697.00
  • FW Murphy Production Controls, LLC
  • Waukesha Bearings Corporation
  • $530.00
  • LiveVox Holdings, Inc.
  • inContact, Inc.
  • $484.88
  • Crocus Technology International Corp.
  • Allegro MicroSystems, Inc. 
  • $420.00
  • Reliance Communications, Inc.
  • PowerSchool Holdings, Inc.
  • $300.00
  • Kaplan Electronics, Inc./certain assets of Cornell Dubilier Electronics, Inc.
  • Knowles Intermediate Holding, Inc.; Knowles Capital Holdings, Inc.
  • $263.00
  • Payzer Holdings, Inc.
  • WEX Inc.
  • $261.00

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Block Bond Holdings, Inc.
  • Foresight Ventures Investments
  • $70.00
  • WealthForge Technologies, Inc.
  • SEI Investments Company (NasdaqGS:SEIC)
  • n/a
  • LTD Online Stores, Inc.
  • Blackford Capital Associates II, Inc.
  • n/a
  • Markettime LLC
  • Hudson Hill Capital Management, LLC
  • n/a
  • Portfolio of high-quality wireless communications towers in the United States
  • Fengate Capital Management Ltd.; LiUNA Pension Fund of Central & Eastern Canada
  • n/a
  • Mainline Information Systems, Inc.
  • H.I.G. Capital, LLC
  • n/a
  • VES, LLC
  • Waséyabek Development Company, LLC
  • n/a
  • RLE Technologies, Inc.
  • May River Capital, LLC
  • n/a
  • SisTech Manufacturing, Inc.
  • LFM Capital, LLC
  • n/a
  • Potter Electric Signal Company, LLC
  • KKR & Co. Inc.
  • n/a

 

Source S&P Capital IQ as of 1/12/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Joe Anto

New York Office

407-621-2141 |

Read More

Eric Zaleski

Chicago Office

847-239-2466 |

Read More

Jon Gogolak

Orlando Office

407-621-2136 |

Read More

Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Kaske, E. “EY M&A sector of the year: Tech leads M&A activity in 2023.” Ernst & Young, 12 December, 2023.
  2. 2. Spangler, T. “Warner Bros. Discovery, Paramount Global in Merger Talks.” Variety, 20 December, 2023.
  3. 3. Mims, C. “Tech Hubs Are Losing the Talent War to Everywhere Else.” The Wall Street Journal, 22 December, 2023.
  4. 4. Williamson, P. “Technological Innovation And Its Impact On The Tech Industry.” MITECHNEWS, 26 December, 2023.
  5. 5. Martin, C. “From Microsoft Acquiring Activision To Disney + Hulu, These Deals Shook Up The Media And Entertainment Space In 2023, Plus 2024 Trends To Watch.” Forbes, 5 December, 2023.
RELATED RESOURCE
RELATED RESOURCE

Keys to Selling Your Digital Agency

Read now
contact usan image