Tech, Media & Telecom Q3 2025

Executive Summary

Valuation appetite held steady into Q3 2025: LTM median TEV/EBITDA = 15.44x and LTM median TEV/Revenue = 2.93x across 2,586 LTM transactions (589 in Q3), underscoring sustained investor interest in scalable, recurring-revenue platforms. Strategic acquirers dominated activity (88.36%) supported by AI-driven consolidation themes, strong corporate balance sheets, and a slowdown in sponsor deployment as financial buyers await lower interest rates to re-enter the market, with financial buyers (8.35%), PE-backed strategics (0.31%), and undisclosed acquirers (2.98%) comprising the balance.^{1 2}

The quarter’s largest closed transactions included Synopsys’ $35.8B acquisition of ANSYS, HPE’s $15.4B purchase of Juniper Networks, Paramount and Skydance $8 Billion Merger, Siemens AG’s $5.1B acquisition of GraphPad Software and Motorola Solutions’ $5.0B acquisition of Silvus Technologies—Additional highlights included the announcement of Silver Lake’s $55 billion take-private of Electronic Arts, the largest take private cash deal of all time, emblematic of ongoing consolidation in gaming and media content portfolios.^{3 4}

Several transformative trends are redefining the TMT landscape: companies are operationalizing AI across core stacks, media conglomerates are pruning portfolios while embedding generative AI into content creation, and telecom operators are racing to expand fiber, edge, and satellite capacity under regulatory and tariff shifts.^{1 2 3}

Market Dynamics

Deals: 589 in Q3; 2,586 LTM (vs. 2,653 a year ago). Valuations: LTM medians 15.44x EBITDA / 2.93x revenue. Strategics leaned into platform integration and AI-native infrastructure; sponsors pursued SaaS, recurring-revenue content platforms, and bolt-ons.^{1 2}

Media deal flow centered on strategic divestitures (e.g., portfolio pruning at large conglomerates) and acquisitions of content/IP franchises. Gaming transactions (EA Sports/Tellus) highlight the continued monetization race across sports titles and esports.^{3 4}Telecom activity was driven by large-scale infrastructure moves (spectrum, fiber, edge) amid tariff/geopolitical uncertainty.^{3 5}

Buyer Landscape

Strategic Acquirers: 2,285 of 2,586 LTM (88.36%). Concentrated in software (AI enablement, SaaS), cloud/data centers, and telecom infrastructure.

Financial Buyers: 216 of 2,586 (8.35%). Sponsors focused on SaaS, payments, and vertical platforms with sticky revenue.

Financial Buyers: 8 of 2,586 (0.31%). Limited activity, typically bolt-on acquisitions within sponsor-owned platforms.

Financial Buyers: 77 of 2,586 (2.98%). Active in mid-market digital media and IT services.¹

Industry Comparison

Despite a modest decline in volume, TMT valuation median multiples increased in comparison to Q2 2025 LTM. Mid-year outlooks highlight sustained investor focus on AI-native platforms, infrastructure scale, and margin-resilient recurring models.^{³ ⁴}

Geographic Expansion

Top U.S. States: California (515), New York (265), Texas (191), Florida (132), Georgia (59). Southeast activity remains elevated, reflecting talent inflows, tax advantages, and lower operating costs.^{¹ ³}

Regional Trends: Cross-border buyers remained active, particularly from Canada, Germany, and the UK, targeting U.S. fiber networks, gaming IP, and SaaS platforms.^{² ³}

Notable Transactions

Largest Transactions Closed

Other Strategic Buyer Transactions Closed

Other Financial Buyer Transactions Closed

Emerging Trends

Key trends shaping Tech, Media and Telecom M&A:

1. AI-Native Transformation
   Transition from experimentation to operational deployment of generative AI and agentic automation across product lines, driving M&A in both tech and talent.^{1 2}
2. Cloud/Data Center Surge
   Hyperscalers and regional players accelerating consolidation to meet AI and streaming demand.^{1 3}
3. Media Portfolio Realignment
   Conglomerates divesting non-core assets; gaming and content consolidation exemplified by Tellus/EA Sports and Paramount Skydance transactions.^{3 4}
4. Regulation, IP & Content Risk
   AI-generated media triggering disputes over copyright, licensing, and attribution.³
5. Telecom Infrastructure Race
   Fiber, edge, and satellite build-outs reshaping competitive dynamics; OpenRAN and hybrid cloud stacks gain traction.^{3 5}
6. Media Portfolio Realignment
   Conglomerates divesting non-core assets; gaming and content consolidation exemplified by Tellus/EA Sports and Paramount Skydance transactions.^{3 4}
7. Tariffs, Geopolitics & Supply Chains
   Equipment localization and supply-chain sovereignty strategies accelerating under decoupling trends.^{2 5}
8. Capital Markets Tightening
   Media/telecom equity/debt issuance declined sharply in Q3 ($4.7B vs. $14.3B YoY), highlighting investor caution.³

Outlook for Next Quarter

Opportunities: AI-native platforms, fiber/edge telecom assets, and media IP franchises should remain attractive to both strategics and sponsors.^{1 2}

Risks: Tariff escalation, geopolitical decoupling, and intensifying antitrust scrutiny may elongate diligence cycles and constrain deal pacing.^{3 5}

Predicted Activity: Continued scale-driven acquisitions in AI infrastructure, SaaS, and telecom networks, sponsors to pursue bolt-ons in SaaS/content roll-ups, cross-border appetite to remain steady in infrastructure and gaming IP.^{1 2 3}

PCE Transactions

Served as advisor to SkyCross on their fairness opinion

Served as advisor to Communications International, Inc. on their acquisition of Fatpot Technologies

Served as advisor to LMG Inc. on their acquisition of Premier Event Technology

Served as advisor to Arete Development, Inc. on their acquisition by Glotel, a portfolio company of The Gores Group

Served as advisor to Level 10 on their sale to Level 10 ESOP Trust

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