PwC says companies must keep close eye on regulators

There were fewer but bigger deals in the media and telecom business in the second quarter, according to a new report from PwC.

The value of merger and acquisition activity was $44.9 billion in the quarter, up 19% from a year ago. The value was also up from the first quarter, when deals were valued at $37.6 billion

But there were 194 transactions, down 20% from a year ago.

Related: Broadcast Station Deals Total $5.11B in 2Q, Says Kagan

The advertising and marketing and internet and information sectors led deal volume in the first half.

The largest deal was the merger of T-Mobile and Sprint, valued at $26.8 billion. There were three transactions valued at more than $5 billion, including Gray Television buying Raycom Media.

“Blockbuster deals dominate the headlines as consolidation continues to play itself out all across the Media & Telecom landscape. “Key market players are evaluating their position and deciphering their next move in a very dynamic ecosystem while keeping a close eye on how regulators address several pending transactions,” said Bart Spiegel, deals partner, U.S. media and telecommunications, PwC.

There has been a lot of activity in the broadcast sector as consolidation leads to divestitures in order to gain regulatory approval.

The number of announced deals was up 44% from a year ago, with the value of the deal at $5.5 billion.

Over the next 24 months, PwC sees a new wave of convergence leading to new forms of competition; end-user relationships also driving convergence; disruption in revenue streams reinventing business models in media; new battlegrounds being propelled by new technologies; and companies generating trust, partly by complying with regulations.