The rapidly shifting world trends have been emphasizing upon companies of media and telecommunications sectors for mergers and so did these companies in year 2018. To merge, T-Mobile and Sprint become agreed upon. For Time Warner, AT&T has closed the deal. Sky has been bought by Comcast whereas Disney acquired the Fox. For all these four deals alone, the total cost remained over $200 billion.
But according to M&A lawyers and Wall Street bankers, afterwards in next two years, there would possibly be no such mergers that the companies in both sectors will be looking at.
Traditional media companies like AT&T, Disney, Discovery, has been threaten, as also publically acknowledged by the executives of these companies, by the Netflix and other technology companies leaving consolidation a better choice for them to compete.
And analysts, for next two years, are expecting the deceleration of such megadeals because of the four reasons.
In 2020, at the time of next presidential elections, media and telecommunication companies are trying their deals not to be got caught in political crossfire as happened in previous elections in 2016 when Donald Trump, in his presidential campaign, showed his intentions to block the AT&T and Timer Warner deal worth $85 billion. So these companies don’t want to be the campaign fodder in next elections.
All the companies involved in the four big deals occurred in 2018, for next two years, will be busy integrating their mergers if approved by the regulators.
Other reason for slow pace mergers in next two years will be the outcomes of recently occurred deals. To the possibility of downward traits, telecom and media companies, for next two years, will be looking at end results of these four big deals occurred this year.
Current volatility of market will be another reason of the slow pace in next two years.