Strategic bets in uncertain times: M&A leaders focus on AI, portfolio optimisation, and supply chain strength.
In the first half of 2025, TMT M&A volumes declined, while deal values rose – driven by large tech transactions. Strategic buyers are building AI capabilities, and Big Tech is ramping up investment in AI infrastructure. As trade tensions impact hardware and semiconductors, investor focus is shifting towards more resilient areas such as software, media, and digital platforms. Big Tech is transforming the media sector through data-driven scale, strategic IP acquisitions, and AI-enabled content innovation. Meanwhile, rising private equity interest in sports and growing telecom investment in AI infrastructure are further shaping the deal landscape. In this evolving environment, disciplined yet agile dealmakers will be best positioned to seize emerging opportunities. What are the developments and perspectives in Switzerland?
TMT dealmakers entered 2025 with optimism, but shifting policies, regulatory inertia, and geopolitical uncertainty have influenced the pace and direction of M&A. Yet many of the trends outlined in our M&A 2025 outlook at the beginning of the year remain strong: larger deals, strategic AI investments, and portfolio realignment continue to drive activity.
New themes have emerged as well. Rising trade tensions and tariffs are prompting dealmakers to derisk global supply chains, particularly in hardware and semiconductors. In some cases, deals in these areas may be postponed as buyers await more visibility on future policy developments. At the same time, sectors more insulated from tariffs – such as software, media, and AI infrastructure – are attracting continued interest.
AI continues to redefine dealmaking across sectors. In semiconductors, the focus is shifting from model development to infrastructure. In media and advertising, tech platforms and AI-driven strategies are gaining ground. Telecoms are seeing deals in data centres and fibre, while continuing to streamline portfolios through consolidation and divestitures.
Spotlight: M&A at the intersection of AI, trade, and strategy
As macroeconomic, technological, and geopolitical dynamics converge, dealmakers are adapting their strategies to navigate disruption and capture new opportunities. We see four key themes influencing TMT dealmakers’ M&A agenda:
TMT M&A deal volumes declined by 11% in the first half of 2025, while deal values rose 20%. Technology accounted for the bulk of activity – 78% of volumes and 83% of values – making it the primary driver of TMT trends. Within the technology sector, deal volumes dropped 11% due to macroeconomic and geopolitical headwinds, but deal values increased 15%, reflecting a shift towards larger transactions and higher valuations, particularly in the race to build AI capabilities. In media and entertainment, deal volumes fell 15%, and in telecoms by 5%. Nonetheless, deal values in both sectors rose, driven mainly by two megadeals (transactions over $5bn): Charter Communications’ merger with Cox Communications, valuing Cox at $34.5bn, and AT&T’s $5.75bn acquisition of Lumen’s Mass Markets fibre internet business.
Global M&A trends in tech, media, and telecoms Technology sector
Strategic buyers step up M&A to build full-stack AI agent capabilities
AI agents – autonomous programmes that can perform tasks, make decisions, and interact with systems and users – are quickly emerging as the next major frontier in artificial intelligence. This is driving a wave of deals across the broader AI value chain, including direct acquisitions, acquihires, and infrastructure investments. Notable examples include IBM’s announced acquisition of DataStax in February 2025 to strengthen enterprise data access for AI agents as well as MongoDB’s acquisition of Voyage AI to enhance its developer platform with advanced vector search, making it easier for teams to build and scale next-generation agents. With demand for intelligent, autonomous systems rising fast, we expect continued momentum in AI-driven M&A throughout 2025 and beyond, especially from strategic buyers aiming to build out full-stack AI capabilities.
Semiconductor M&A remains strong amid surging AI demand
Chipmakers are reshaping portfolios to meet growing infrastructure needs, with strategic acquisitions highlighting urgency and scale. AMD completed its $4.9bn acquisition of ZT Systems in March 2025, and SoftBank announced a $6.5bn bid for Ampere – just two months after unveiling its $500bn Stargate Project with OpenAI. NXP’s proposed $307m acquisition of Kinara reflects a vertical integration strategy focused on AI-enabled mobility and edge computing. At the same time, leading semiconductor firms are divesting non-core assets to refocus on AI. Notable moves include Marvell’s $2.5bn sale of its Automotive Ethernet business to Infineon, Infineon’s planned sale of its Fab 25 plant to SkyWater Technology, and Intel’s $4.5bn sale of a 51% stake in Altera to Silver Lake. With potential rollbacks on US chip export controls signalling a push for domestic innovation, we expect semiconductor M&A to remain a priority through the rest of 2025.
Global M&A trends in tech, media, and telecoms Entertainment and media
Entertainment giants have new partnerships in mind
Comcast’s planned spin-off of Versant, Warner Bros. Discovery’s announced separation of its studio and digital units, and Paramount’s merger with Skydance all reflect a broader trend of unlocking value through separation. These moves may pave the way for new alliances – particularly in the direct-to-consumer and OTT space – where scale remains a critical factor for long-term success.
Big Tech is redefining the media landscape through scale, data, and IP
As technology platforms gain influence, legacy media companies are losing ground to data-driven, capital-rich disruptors. This shift is reflected in M&A activity, including Omnicom’s proposed $13bn merger with IPG, which aims to combine data and tech platforms for growth. Amazon is also expanding its media footprint – following its $8.5bn MGM acquisition, it announced a $1bn deal in February 2025 to gain creative control of the James Bond franchise. At the same time, AI is transforming content creation, accelerating production, and opening new avenues for innovation and efficiency – trends we expect to drive continued deal activity in 2025.
Investor capital targets high-value sports assets
Private equity interest in the sports sector is accelerating, supported by recent regulatory changes such as the NFL’s allowance of PE investment. New midsize funds are beginning to deploy capital globally, as seen in Sixth Street’s equity investment in the San Francisco Giants and its role in the $6.1bn acquisition of the Boston Celtics, announced in March 2025. International investors are also entering the space – Saudi Arabia’s Surj Sports recently took a minority stake in DAZN. With steady domestic revenue and limited exposure to trade risks, the sports sector may continue to attract a wider range of investors in the second half of 2025. Longer term, growing demand for tech-enhanced fan experiences is likely to shape future investments.
Global M&A trends in tech, media, and telecoms Telecommunications
Telecom M&A accelerates amid scaling and AI infrastructure investment
The push for scale is driving convergence in the telecom sector, with major deals including Swisscom’s $8.3bn acquisition of Vodafone Italia, Verizon’s $20bn acquisition of Frontier Communications, T-Mobile’s $4.4bn pending deal for US Cellular, Charter Communications’ $34.5bn acquisition of Cox Communications, and AT&T’s $5.75bn acquisition of Lumen’s Mass Markets fibre business. Telecoms are also expanding AI-enabling infrastructure. Nokia’s $2.3bn acquisition of Infinera targets data centre growth, while Vocus’s $3.5bn deal for TPG’s fibre business and Zayo’s $4.25bn acquisition of Crown Castle’s Fiber Solutions unit reflect continued investment in fibre and network densification. We expect these trends to sustain M&A momentum through the rest of 2025.
The portfolio optimisation paradox
Some operators are shifting away from scale to focus on operational efficiency and capital discipline. Examples include Crown Castle’s $8.5bn divestiture of its Small Cells and Fiber Solutions units to EQT and Zayo (each $4.25bn), and Telefónica’s $1.25bn sale of its Argentina business. Yet portfolio reviews can yield opposite outcomes – Telefónica exits Argentina while Verizon doubles down on domestic assets with its planned acquisition of Frontier. These moves highlight how telecoms are making targeted decisions – exiting non-core markets or expanding where conditions are favourable.
“After a dynamic start to 2025, Swiss TMT deal activity softened in the second quarter – reflecting ongoing market uncertainty and a more selective investor appetite. Still, the sector continues to benefit from strong fundamentals and structural drivers such as AI, cloud computing, and cybersecurity, which will remain key catalysts for M&A in the second half of the year.”
Lasse Stünitz,Partner, M&A TMT Leader, PwC SwitzerlandM&A developments in the Swiss TMT sector
While M&A activity in the Swiss TMT industry defied the global slowdown in early 2023 – recording record transaction volumes – deal activity saw a steady decline from the second quarter of 2023 through the second quarter of 2024. A slight rebound in the third quarter of 2024 signalled renewed investor interest, before stabilising at second-quarter 2024 levels by year-end. This trend shifted in 2025, with the first quarter marking a renewed surge in transaction activity (41 deals), the highest quarterly volume since the second quarter of 2023. However, the second quarter of 2025 saw a notable slowdown to just 19 deals, reflecting continued market volatility and cautious sentiment. As of mid-2025, total deal volume stands at 60, suggesting a potential year-end recovery if momentum picks up in the second half of the year.
The dynamics that impacted the 2024 slowdown – global uncertainty, higher financing costs, and valuation gaps – remain present in 2025. Dealmakers continue to take a cautious approach, closely monitoring inflation trends, interest rate developments, and strategic alignment before re-engaging in new transactions.
Technology remains the dominant sector, while media and entertainment continue to contribute lower deal volumes. In the trailing 12-month period ending the second quarter of 2025, the Swiss TMT market recorded 132 completed transactions, indicating modest improvement year-over-year and ongoing resilience in selected subsectors.
As in prior periods, transactions involving software companies continued to form the backbone of Swiss TMT M&A activity in the first half of 2025, accounting for more than two thirds of all TMT deals. IT services businesses remained the second-largest contributor, representing approximately 18% of transactions. Overall, the “technology” segment continues to dominate the TMT deal landscape in Switzerland, with about 80% of all transactions in the first half of 2025 related to technology assets. With valuation levels currently still below the peak levels observed in recent years across TMT sub-sectors, software companies remain highly attractive M&A candidates, but we also observe sustained activity in areas such as cloud computing, data analytics, collaboration tools, artificial intelligence, and cybersecurity. These segments are supported by stable growth fundamentals, resilient business models, and ongoing consolidation potential. We expect software to remain the primary driver of Swiss TMT M&A activity throughout the remainder of 2025.
With strong underlying fundamentals, and continuing the trend of previous years, the Swiss TMT M&A space once again attracted significant interest from private equity and financial investors. In the first half of 2025, private equity buyers accounted for 65% of all Swiss TMT transactions – slightly below the 2024 average of 68%, yet still well above historical levels. Compared to other industries, where private equity typically accounts for close to – but still under – 50% of transactions, TMT stands out as a preferred sector for buyout activity. Given the still significant available dry powder, we expect private equity to remain an active force in Swiss TMT dealmaking throughout 2025.
As in prior periods, non-Swiss buyers continue to play a key role in driving M&A activity in the Swiss TMT sector. In the first half of 2025, foreign buyers accounted for approximately 71% of all TMT transactions, maintaining their dominant position in the market. This level remains well above the cross-sector average in Switzerland, where domestic and foreign buyers typically split activity more evenly. The continued high share of cross-border deals underscores the strong international appeal of Swiss TMT assets and the global perspective of the sector – particularly when compared to more domestically focused industries.
Similarly, non-TMT buyers continue to drive the appetite for transactions in the TMT sector, with cross-sector buyers accounting for 77% of all TMT-related transactions in Switzerland in the first half of 2025. Unlike other industries in Switzerland, where M&A activity is more evenly split between same-sector and cross-sector deals, TMT stands out for its high share of cross-sector transactions – reflecting the sector’s role as a driver of digital transformation and innovation across the economy. With digital capabilities becoming increasingly critical across all sectors, we expect non-TMT buyers to continue targeting TMT assets to strengthen their strategic positioning in an evolving business landscape.
M&A outlook for tech, media, and telecoms for the second half of 2025
The key trends highlighted in our 2025 outlook at the start of the year – including software consolidation, Big Tech’s continued capital investment, telecom portfolio realignment, the rise of new media platforms, expanding data centre demand, and the ongoing AI-driven momentum in semiconductors – are set to remain the major deal drivers in the second half of the year.
Also in Switzerland, despite softer deal volumes in the second quarter, TMT M&A activity remained resilient in the first half of 2025, driven by strong investor focus on technology, which accounted for over 80% of all transactions. For the remainder of 2025, we expect Software companies to continue driving deal activity. In addition, cloud infrastructure, data analytics, AI, collaboration tools, and cybersecurity are areas poised for sustained growth. Private equity is likely to maintain its strong presence, as investors seek scalable digital assets. With foreign buyers acquiring more than 70% of Swiss TMT assets over the past years, the sector’s global and cross-sector appeal remains robust, signaling continued momentum and international interest in Swiss innovation.
Although geopolitical tensions and uncertainty around tariffs and trade policies may limit deal flow in some areas, disciplined yet agile dealmakers will be well-positioned to seize emerging opportunities through the remainder of 2025 and into 2026.
M&A industry trends in Switzerland
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Lasse Stünitz