Optimism emerging: outlook for media M&A in 2026

February 2026  |  FEATURE | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

February 2026 Issue

Confidence has returned to the media M&A market, driven by a shift in investor sentiment and a changing geopolitical landscape. Lower interest rates are creating more favourable deal conditions, while artificial intelligence is unlocking new opportunities and investor appetite remains strong.

Global media M&A in the first half of 2025 saw total disclosed deal value rise sharply to $60bn, up from $12.3bn in the same period of 2024, according to BDO, even as overall volumes edged lower. Much of this value was driven by the $34.5bn Charter–Cox Communications mega deal. Excluding this, the average deal size falls back to around $219m, underscoring the steady flow of mid-market transactions. Although volumes declined, the sharp increase in average deal size points to a market defined less by volume-driven activity and more by larger, strategically significant transactions.

Excluding the outsized deal, aggregate value growth of nearly 90 percent underlines a clear pivot toward bigger-ticket opportunities. Buyers are focusing on scale and quality, even as the total number of deals contracts. Together, these trends signal a market where fewer but materially larger deals are shaping the landscape.

Interest in media M&A has come at a time when, despite uncertainty over US tariff policies and geopolitical conflicts, wider global M&A activity has been on the rise. According to Boston Consulting Group, total global M&A activity grew 10 percent in the first nine months of 2025 compared with the same period in 2024, with deal volume rising to $1.938 trillion from $1.763 trillion.

In the media space, deals are likely to continue at pace, particularly as convergence accelerates across subsectors such as gaming, entertainment, live sports and brand-led media.

Streaming

Streaming remains attractive and has seen notable deals, such as Warner Bros. Discovery’s minority investment in OSN Streaming Ltd. for $57m and Roku’s $185m acquisition of Frndly TV. In June 2025, Sky sold its German pay-TV business to RTL Group in a deal that could ultimately value the business at almost £500m and create a sport, news, entertainment and streaming giant with 11.5 million paying subscribers.

Streaming is still in its infancy compared with more established sectors, yet it offers enormous opportunities for acquirers. Success will rely on partnerships that enhance content offerings and market position while addressing consumer needs. This is reflected in lengthening timelines and extended due diligence across global media M&A.

Although streaming remains attractive, growth has slowed, causing platforms to branch into areas such as sports rights. In 2024, streaming platforms globally spent $10bn on sports rights as companies such as Netflix and Amazon secured major broadcast deals, according to Ampere Analysis. This shift has been driven by the need to move beyond growth and into profitability.

A further challenge has been the battle for ownership and control of intellectual property (IP) across the content lifecycle, from creation through to secure distribution and monetisation. Companies are focusing not only on content libraries but also on the technological infrastructure that enables seamless delivery and monetisation.

This intensifying focus on IP control and delivery infrastructure set the stage for a high-profile move in December 2025 that reshaped the competitive landscape. Netflix agreed to acquire Warner Bros. film and TV studios, HBO and HBO Max in an $82.7bn cash-and-stock deal ($27.75 per WBD share, $72bn equity value). The transaction excludes Discovery Global assets, which would spin off in Q3 2026. Netflix would maintain theatrical releases and HBO Max separately.

A few days after the announcement, however, Paramount Skydance launched a hostile takeover bid, offering $30 per share in cash, totalling around $108bn, directly to Warner Bros. Discovery shareholders, challenging the Netflix merger by appealing over management’s objections.

Gaming industry

The gaming industry is more established and expected to see considerable growth. The global games market is projected to reach $196bn by 2026, reflecting a steady annual increase of 3.7 percent according to Konvoy.

Video game M&A is expected to remain active in 2026, driven by market rebound, strong mobile gaming growth and mounting private equity (PE) interest. In 2023, PE funds spent $5.4bn on gaming deals, according to PitchBook, rising to $8.5bn in 2024. Activity surged in 2025 with the $54.7bn buyout of Electronic Arts by Silver Lake, Affinity Partners and Saudi Arabia’s Public Investment Fund. This deal may mark a turning point for PE in gaming. According to PitchBook, the EA deal represents the bulk of investment in the space up to October 2025, making 2025 the most active year, with $62.8bn of PE capital invested.

Other notable deals include Scopely’s acquisition of Niantic’s gaming business for $3.5bn, CVC Capital Partners’ $3.5bn stake in Dream Games and Tencent’s $1.3bn investment into Ubisoft’s carve-out of Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six.

Escalating development costs, particularly for AAA games – estimated at $250m to $600m and up to $1bn for titles such as Grand Theft Auto VI – alongside marketing expenses, mean studios will continue to seek investors with deep pockets.

Looking ahead

Consolidation is likely to continue in the media space throughout 2026, particularly among content producers, streaming platforms and firms seeking scale, data capabilities and diversified revenue streams. PE involvement looks set to increase. Despite macroeconomic uncertainty, the outlook for dealmaking in the media space remains cautiously optimistic.

© Financier Worldwide

BY

Richard Summerfield