Media M&A reshapes the power map

A market defined by scale

The most visible activity in media M&A today is at the top of the market. Bedrosian said a significant portion of last year’s $557 billion in deal value came from transactions above $10 billion. High-profile consolidation, including large-scale take-private transactions, has inflated the market’s overall value while masking softer activity elsewhere.

While headline transactions generate momentum and signal confidence, the broader market tells a more disciplined story. With the total deal count still well below historic highs, middle-market companies face a more selective buyer universe.

Homonoff pointed to high-profile consolidation scenarios, including speculation around major studio and streaming combinations, as examples of how scale is becoming central to strategy. Whether those specific outcomes materialize, he added, the industry’s direction is clear: size and portfolio breadth are increasingly strategic advantages.

For boards and investors, this difference creates both opportunity and risk. Capital is flowing, but it is flowing toward scale, durable brands and clearly articulated transformation plans.

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Public and private markets are drifting apart

In their conversation, Homonoff raised an issue that concerns many media executives: How closely should private valuations track public market performance?

Bedrosian said most of last year’s transactions were private company deals. While public deals provide useful benchmarks, they are often larger in scale and benefit from liquidity premiums.

“There is a linkage,” Bedrosian said, “but it’s not as direct as one might think or hope.”

That disconnect can create expectation gaps. Founders may look at public trading multiples and assume similar valuations apply. Buyers, however, adjust for size, growth profile and risk concentration.

Market volatility can widen that gap. Bedrosian referenced the recent selloff in certain “software-as-a-service” (SaaS) segments, which he called a “SaaS Apocalypse,” as an example of how public sentiment can influence private negotiations even when fundamentals remain sound. SaaS investors have been spooked by the accelerating use of AI in place of SaaS providers, Homonoff said.

Also, Bedrosian said that after mega-deals close, the next 12 to 18 months frequently produce mid-market opportunities as buyers reassess the strategic fit within the new landscape. For companies not directly involved in the initial consolidation, these deals can create entry points into the market.

For sellers, preparation becomes critical. Clear differentiation, credible forecasting and strong financial presentation are now prerequisites rather than advantages.

Capital is patient and strategic

Bedrosian and Homonoff also acknowledged the growing role of sovereign wealth funds and family offices in U.S. media and sports investments.

Bedrosian described sovereign wealth investors as increasingly professionalized and focused on established, iconic brands. Their mandate typically favors moderate risk-adjusted returns and long-term value preservation. As a result, sports franchises and globally recognized media properties align well with their investment profiles. Homonoff noted the increasing visibility of sovereign capital in major media transactions and sports leagues. That capital is not speculative, but strategic and often relationship-driven.

Family offices, meanwhile, offer extended time horizons. Bedrosian emphasized that unlike traditional private equity funds operating on fixed cycles, many family offices can support multi-year transformations. That flexibility is particularly attractive in media segments undergoing structural change. However, Bedrosian cautioned that these relationships are rarely purely transactional, and companies seeking this capital must invest time in building trust and strategic alignment.

Sports becomes an institutional asset class

Sports has emerged as one of the most dynamic media and entertainment sectors, which Bedrosian said is now a recognized institutional asset class in the industry. Dedicated private equity funds, sovereign investors and family offices are now active participants in sports franchise ownership and adjacent technologies.

Two forces underpin that shift. First, media rights continue to escalate. Homonoff pointed to the NBA’s new $70 billion media deal and the NFL’s anticipated renegotiation window as evidence of sustained demand. Live sports remains one of the few content categories that consistently commands real-time audiences at scale.

Second, technology is reshaping franchise economics, Bedrosian said, spurring investments in fan analytics, ticketing systems, merchandising platforms and player evaluation tools. Institutional owners are deploying capital to modernize operations and unlock incremental revenue.

The result is a reinforcing cycle: higher media values attract institutional capital, which in turn drives operational sophistication and further value creation.

AI enters the diligence room

AI surfaces repeatedly as a factor in media and entertainment deal-making, Bedrosian said. Buyers now routinely ask management teams to articulate their AI strategy and demonstrate how they are mitigating disruption risk, and vague assurances are no longer sufficient.

“The end depends on the beginning,” said Bedrosian about deal-making, underscoring the importance of preparation. From quality of earnings analysis to operational strategy, thoughtful positioning early in the process reduces friction later.

AI is also influencing diligence mechanics. Technology-enabled tools are streamlining document review and financial analysis. Yet the fundamentals remain unchanged. Clear governance, reliable data and disciplined communication still determine transaction success.

Conclusion

Homonoff and Bedrosian see a media and entertainment M&A market defined by scale transactions, disciplined capital and expanding institutional participation. Though aggregate deal value has rebounded, deal volume remains below historic highs. Technology platforms now dominate ownership conversations, and AI is embedded in diligence assessments, even when it is not part of the assets.

For media executives and investors, expectations must reflect market realities. Capital partnerships must align with long-term transformation. Preparation, data integrity and strategic clarity are essential in a more sophisticated buyer environment.

As Homonoff suggests, M&A remains a bellwether. In this cycle, it signals not only consolidation but a redistribution of influence across the media ecosystem. Those who understand the structural shifts beneath the headlines will be best positioned to shape what comes next.

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