Technology Spending Expected to Increase in 2023
According to a recent report by research company Gartner, overall tech spending is forecasted to increase by 5.1% in 2023. Despite declines in consumer spending and layoffs in 2022, technology executives expect to increase spending on cybersecurity and new technologies and maintain or grow their workforce in the new year. In a survey conducted by CNBC, about 74% of executives expect to increase technology spending in the next 12 months, while 22% expect no change.1
Tech Industry Faces Highest Layoff Since Pandemic
Technology companies shed more than 150,000 jobs in 2022, nearly doubling the roughly 81,000 tech layoffs in 2020, according to research site www.Layoffs.fyi. The tech layoffs come as the economy is showing signs of cooling while the Federal Reserve continues to hike rates. Consumer and retail experienced the most significant layoffs within the tech sector for a combined 40,000 jobs. Meta and Amazon accounted for roughly half the cuts in consumer and retail.2
FTC Seeks to Block Microsoft’s $69 Billion Acquisition of Activision Blizzard
The FTC filed an antitrust lawsuit against Microsoft after alleging the company’s $69 billion planned acquisition of Activision Blizzard would harm competition and suppress competitors of its Xbox gaming console and subscription services. The acquisition, would be Microsoft’s largest deal and make them the third-largest gaming company in the world. Microsoft is also getting pushback from rival Sony, which has lobbied against the deal, claiming the company could completely cut them out from popular gaming series.3
TikTok Faces Potential Bans in the U.S.
TikTok, the viral video-sharing platform popular with teens and young adults, is now in hot water. Lawmakers are skeptical of TikTok’s China-based parent company, ByteDance, and their ability to remain independent of the Chinese government. Included in the $1.7 trillion spending bill recently signed into law by President Biden, federal employees will soon be prohibited from using TikTok on government-issued devices. Legislation for a nationwide ban has also been introduced in the Senate and House.4 5
Largest Transactions Closed
- Twitter, Inc.
- Zendesk, Inc.
- Hellman & Friedman LLC; GIC Private Limited; Abu Dhabi Investment Authority; Permira Advisers LLC
- Switch, Inc.
- IFM Investors Pty Ltd; DigitalBridge Group, Inc.
- Avalara, Inc.
- Vista Equity Partners Management, LLC
- Incumbent Local Exchange Carrier Business in 20 States of Lumen Technologies, Inc.
- Connect Holding LLC
- Frontline Technologies Group LLC
- Roper Technologies, Inc.
Other Financial Buyer Transactions Closed
- Ping Identity Holding Corp.
- Thoma Bravo, L.P.
- BTRS Holdings Inc.
- EQT Partners Inc.
- Computer Services, Inc.
- Centerbridge Partners, L.P.; Bridgeport Partners LLC
Other Strategic Buyer Transactions Closed
- BAMTech, LLC
- The Walt Disney Company
- FWD Media, Inc.
- KIRKBI A/S
- Trader Interactive, LLC
- carsales.com Ltd
- ChannelAdvisor Corporation
- Commerce Technologies, LLC
- TaxACT Holdings, Inc.
- DS Admiral Bidco, LLC
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.
EBIT - Earnings Before Interest and Taxes