Dec. 23 at 8:52 PM
Mergers and acquisitions (M&A) reached
$4.39 trillion in 2025 and are on pace to hit
$4.55 trillion, a 30% increase from last year. Technology and industrials lead deal value, totaling nearly
$1.4 trillion, driven by larger transactions rather than more deals. Notable examples include Netflix’s
$72 billion bid for Warner Bros. streaming assets and Palo Alto Networks’
$25 billion acquisition of CyberArk.
Looking ahead to 2026, M&A activity is expected to grow due to lower interest rates, economic expansion, and
$2.2 trillion in private equity “dry powder.” Technology, especially AI-related software, and cybersecurity are likely areas for acquisitions, with Microsoft, Alphabet, and Amazon seen as potential buyers. Healthcare and biotech also present opportunities, as large pharmaceutical firms acquire smaller biotechs. Increased deal activity could boost small-cap stocks, particularly in sectors attracting buyout offers.
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