As 2025 draws to a close, dealmakers are eyeing a blockbuster acquisition worth tens of billions.
Paramount-Skydance Media Group’s hostile takeover bid for Warner Bros. Discovery, wresting the target from Netflix, encapsulates this year’s key M&A themes: reignited corporate appetite for transformative deals, Wall Street’s massive capital injections, sustained Middle Eastern investment, and former U.S. President Donald Trump’s dual role as both disruptor and dealmaker.
Bloomberg data shows that amid looser regulations, companies pursued ambitious consolidation, driving global M&A volume up roughly 40% year-over-year to $4.5 trillion—the second-highest annual total on record, featuring an unprecedented number of mega-deals exceeding $30 billion.
Ben Wallace, Goldman Sachs’ co-head of Americas M&A, noted: “Boards and CEOs widely believe this is a multi-year window for bold moves. With rate cuts underway, markets anticipate further liquidity easing.”
Beyond Netflix’s pursuit of Warner Bros., landmark deals this year included Union Pacific’s $80 billion (including debt) acquisition of Norfolk Southern, Electronic Arts’ record leveraged buyout, and Anglo American’s takeover of Teck Resources, reshaping global mining.
Maggie Flores, a partner at Kirkland & Ellis, observed: “No one wants to fall behind as peers capitalize on favorable conditions. The regulatory climate is ripe for M&A, and players are seizing the moment.”
Yet some warn the frenzy may be unsustainable. Trade tensions persist, equity markets fueling dealmaking remain frothy, and analysts increasingly caution about a potential sell-off.
Goldman Sachs, JPMorgan, and Morgan Stanley executives flagged near-term correction risks, partly due to overheating AI investments inflating tech valuations.
Charlie Dupre, JPMorgan’s global investment banking chair, warned: “AI-driven returns aren’t sustainable. When that cools, broader market momentum will fade.”
The AI boom spurred major transactions: OpenAI attracted billions from SoftBank, Nvidia, and Disney; Blackstone’s infrastructure arm led a $40 billion buyout of data-center firm Synergy; Alphabet acquired cybersecurity startup Wiz for $32 billion to bolster AI-era protections.
Wally Cheng, Morgan Stanley’s global tech M&A head, said: “Every banker must understand AI now. Like software 15 years ago, it’s reshaping industries.”
Tech M&A hit record highs, with secondary deals and even U.S. government involvement—taking a ~10% stake in Intel to revive domestic chipmaking.
This underscored Trump’s willingness to blur public-private lines in “strategic” sectors during his second term, including rare-earth producer MP Materials. Commerce Secretary Howard Lutnick hinted at similar defense deals.
Trump also influenced high-profile deals, demanding “golden shares” in Nippon Steel’s U.S. Steel purchase and opposing any Warner Bros. bid excluding CNN restructuring.
Boston College’s Brian Quinn noted: “This interventionist approach marks a stark shift from traditional GOP policies.”
Bankers speculate 2025’s tally could’ve been higher without Trump’s early-year trade wars stalling deals. Flat deal counts reflect lingering economic headwinds.
McKinsey’s Jack Henry said mid-market firms prioritized organic growth over M&A unless compelling offers emerged.
Private equity, a dealmaking bellwether, still faces valuation gaps hampering exits—though lower rates are reviving activity.
BofA’s Saba Nazar noted: “Sponsors’ urgency to return capital is intensifying bidding wars.”
Despite falling short of all-time records, Wall Street expects the momentum to eventually breach new highs.
Citi’s Brian Link recalled anticipating post-April tariff analyses, but “unless panic returns, this M&A surge isn’t slowing soon.”
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