Navigating the Future: What to Expect in M&A by 2026
Media and Entertainment Sector Sees Turbulent Merger and Acquisition Activity Heading into 2026
The media and entertainment industry is undergoing significant transformation, marked by a surge in mergers and acquisitions, spinoffs, investments in artificial intelligence, and leveraged buyouts. This whirlwind of deal-making is setting the stage for a crucial year in 2026.
Key themes shaping the landscape include streaming consolidation, local broadcast ownership, and substantial investments from Middle Eastern entities. Among the influential players in this dynamic environment are former President Donald Trump, billionaire Larry Ellison, and Kushner Companies’ Jared Kushner.
A standout deal announced in 2025 is Netflix’s blockbuster $82 billion acquisition of Warner Bros’ studios and streaming assets. Meanwhile, a consortium led by Silver Lake, Saudi Arabia’s Public Investment Fund, and Kushner’s Affinity Partners is negotiating to take video game giant Electronic Arts private for $55 billion. On another front, Charter Communications is set to acquire Cox Communications for $34.5 billion, while Nexstar has agreed to buy rival Tegna for $6.2 billion, a deal contingent on regulatory approval from the Trump administration.
As part of this shift, Comcast’s planned spinoff, Versant Media, is expected to begin trading soon. Additionally, Warner Bros is preparing to separate its Discovery Global Networks from its main operations in the third quarter of 2026, signaling ongoing changes in linear television’s dominance.
Disney has also made headlines, completing a notable $1 billion investment in Sora’s parent company, OpenAI, paving the way for future collaborations. Industry experts predict that such partnerships will become increasingly common.
“Resistance is futile,” remarked an industry insider, referencing the historical shifts in the music industry due to online distribution. “We’re starting to see conversations between companies that previously competed. The legalities surrounding AI, particularly in terms of copyright, will need to be addressed.”
Despite some deals falling through, such as the failed Venu Sports venture involving Fox and Warner Bros, Disney quickly moved to acquire Fubo, merging it with Hulu + Live TV. Such rapid adjustments illustrate a broader trend as companies strive to adapt to a shifting landscape.
According to PwC’s US Deals 2026 Outlook, media and telecom transactions have significantly increased in volume and value, characterized by major megadeals, consolidations within streaming, and a focused shift towards profitability. “A lot of trends came to a head this year,” noted Bart Spiegel, a Partner in the Media & Entertainment division at PwC US.
Looking back, many executives anticipated a surge in deals following Trump’s return to the presidency and subsequent deregulation efforts. However, initial market volatility, driven by trade tariffs, created an uncertain environment. Despite current challenges, tariff rates remain elevated, hovering around 16.8%, the highest since 1935.
As the media sector heats up, Trump’s approach to regulating the industry complicates matters. He has been vocal against mainstream news outlets and has threatened to revoke broadcast licenses over coverage he deems unfavorable. The FCC’s Brendan Carr has played a pivotal role, approving key mergers only after companies resolved lawsuits, a move that reflects the political context influencing the sector.
Amid these changes, Warner Bros Discovery’s decision to finalize its deal with Netflix comes amid significant competition. Paramount has made a competing offer, indicating a possible bidding war. “The race is neck and neck right now,” said Peter Supino, an analyst at Wolfe Research. “Paramount needs this deal more than Netflix does.”
The streaming landscape continues to evolve, influenced by companies’ shifts from aggressive growth strategies to a focus on efficiency and profitability. Mergers and spinoffs reflect a trend towards consolidating operations that resonate with consumers.
In related developments, a new consortium is poised to acquire around 80% of an American version of TikTok, amid ongoing complexities regarding the app’s future in the U.S., currently overseen by China’s ByteDance.
As valuations for smaller media companies increase, strategic partnerships may become more common. In sports, investment activity is thriving, with firms looking to capitalize on the burgeoning sports ecosystem.
Ultimately, the media and entertainment industry stands on the precipice of change, with evolving dynamics promising an engaging narrative in the years to come.
