GlobalData’s latest report underscores the cloud's emergence as the dominant theme in the rising mergers and acquisitions (M&A) deal activity in tech, media, and telecom (TMT) in 2024.
“Global TMT M&A Deals 2024 – Top Themes and Predictions – Strategic Intelligence” reports that cloud-related deals reached $61 billion in 2024, growing 221% from the previous year.
“In today’s fast-paced market, adopting cloud-based solutions is essential for maintaining a competitive edge, while those slow to adapt risk falling behind. To enhance cloud performance, companies have invested in AI-driven IaaS, PaaS, and SaaS solutions, alongside expanding hyperscale cloud infrastructure and edge AI capabilities,” Priya Toppo, analyst, Strategic Intelligence at GlobalData, said.
Market driver
Toppo said that the application software sector in TMT has driven significant M&A deal activity, accounting for $253 billion across 230 deals. Telecom services, IT services, music, film and TV, and gaming sectors followed the application software sector.
“Although the TMT sector saw growth in M&A activity in 2024, cloud deals played a crucial role, with major companies like Microsoft, Google, Amazon, and Oracle acquiring AI-native cloud firms, cybersecurity providers, and data analytics companies to strengthen their cloud ecosystems, marked by a substantial decline in both deal value and volume. The outlook for M&A activity in 2025 remains subdued; however, easing inflation and lower interest rates may lead to a gradual recovery,” said Toppo.
Market challenges
Some challenges in the M&A market in 2024 were persistent inflation, relatively high interest rates, regulatory scrutiny, and geopolitical tensions. Moreover, GlobalData reveals the demand for cloud computing continues to increase as businesses seek greater scalability, agility, and operational efficiency.
