Global Tech M&A Overview
After soaring in 2021, M&A in the TMT sector lost some altitude in Q1 ’22. While expectations for an active Q2 ’22 are still largely present, dealmakers are cautiously optimistic.
Tech Pockets to Look Out for in 2022
2021 offered a favorable capital-raising environment for businesses, driving growth of new technology companies globally.
- Technologies such as AI, IoT, and cloud-based computing have caused significant disruption across sectors
- Crypto, health tech, energy storage, and metaverse are some of the hot pockets to keep an eye out for in 2022
Avenues for Performance Marketing in the Metaverse1
While there is still a long way to go for many marketers to start spending on metaverse and other virtual worlds, these platforms have already begun building the avenues for brands and marketers can leverage, including:
- Hosting customized live events with customers and marketing partners
- Creating virtual communities where members can interact with brands and other users
- Building o-marketing strategies for different brands in virtual worlds and sponsored events
Digital Media M&A in Q1’ 22 vs. Q1’ 21
- Q1’ 22 recorded a total of 447 deals, ~19% lower than 549 recorded deals in Q1’ 21
- Overall deal value for Q1’ 22 was $156.5B, over 120% increase on a Y-o-Y basis
- Deal value in mega deals (>$1B) also increased by ~180% from $52.7B in Q1’ 21 to $146.8B in Q1’ 22 (predominantly driven by Microsoft’s acquisition of Activision), with 96% of the overall mega-deals value from U.S. targets
- Deal count in mega deals decreased by 29% from 17 deals in Q1’ 21 to 12 deals in Q1’ 22
- Digital media M&A market in Q1’ 22 was mostly driven by activity in the media services, e-commerce and digital media technologies segments
- U.S. dominated the global digital media M&A market in Q1’ 22, both in terms of deal count (48%) and deal value (93%)
