spike circle

Analysis

Technology, media, and telecommunications M&A update: Q4 2022

As software development continues to expand, the demand for automated code review tools has grown urgent due to its inherent ability to accelerate software product development.

Technology, media, and telecommunications trends

  • Application software
    Artificial intelligence software is increasingly being implemented into business environments to minimize time spent on repetitive tasks, improve productivity, and enhance the overall customer experience while avoiding potential mistakes.1
  • Internet and digital media
    Keyword-based search and social continue to remain strong channels of online media advertising, accounting for 55% of total ad spend in 2022.2
  • Diversified IT services
    The global serverless computing market is expected to grow at a compound annual growth rate of 22.2% between 2023 and 2028 due to its lower price point and flexibility to scale with customers’ shifting computing needs.3
  • Hardware 
    In 2022, the US manufacturing sector faced labor shortages, and it is estimated that 2.1 million manufacturing jobs could go unfilled by 2030.4
  • Traditional media
    After years of robust subscriber growth and massive investments into original content, several streaming services are beginning to take cost-cutting measures.5
  • Telecommuncations
    As use cases expand for virtual reality, the need to support the metaverse’s heavy data requirements will also likely increase.6

This newsletter is a periodic compilation of certain capital markets information. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

References

1 Krystal Hu, “ChatGPT sets record for fastest-growing user base – analyst note,” Reuters, updated February 1, 2023.

2 Zenith, “Zenith forecasts 4.5% growth for 2023 after 7.3% uplift in 2022, marking continued healthy growth,” December 5, 2022.

3 Expert Market Research, Global serverless computing market outlook, accessed December 31, 2022.

4 National Association of Manufacturers, “2.1 million manufacturing jobs could go unfulfilled by 2023,” May 4, 2021.

5  Jon Swartz, “Peak TV’ is coming to an end as streaming services look to cut costs,” MarketWatch, updated December 24, 2022.

6 Sydney Price, “The ‘cloudification’ of telcos presents major opportunities for cloud services,” S&P Global Market Intelligence, July 12, 2022.

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.