We recently participated in a panel discussion at the FT’s 2025 Business of Entertainment Summit in Los Angeles – the topic was: ‘M&A in Entertainment: Growth, Competition, and the Next Big Deals.’
Mergers and acquisitions continue to reshape the global entertainment landscape, driving expansion, innovation, and competition. As streaming, content production, and digital media evolve, companies are pursuing strategic deals to strengthen their libraries, enhance distribution, and maintain a competitive edge. The next wave of M&A is expected to center on streaming consolidation, AI and virtual reality integration, and the race for exclusive IP. We explored various topics and themes including:
- What role will private capital play in entertainment M&A?
- Which entertainment giants are likely to be the most aggressive in pursuing acquisitions?
- What will be the impact of AI on the value of content creators and legacy media?
- What is the role of premium/super-premium content?
- How much of M&A will be about IP acquisition and extension?
- Will consolidation in the industry stifle creativity or lead to new content opportunities? Merging creative companies is really hard – what can be done to make it work well?
- Who are the new gatekeepers on content creation and distribution, and how are they interacting with the traditional players?
- How is the Trump administration affecting the regulatory and economic landscape and how with that affect M&A?
Key Takeaways from the FT’s 2025 Business of Entertainment Summit Panel: M&A in Entertainment – Growth, Competition, and the Next Big Deals
The entertainment industry stands at an inflection point. Capital, content, and technology are converging in new ways, and the next wave of M&A will be shaped by who controls premium IP, how efficiently they can monetize it, and how quickly they deploy capital across an increasingly global, tech-driven ecosystem. Below are a few key takeaways from our recent panel discussion on the evolving entertainment M&A landscape at the FT’s 2025 Business of Entertainment Summit in Los Angeles.
Premium IP is expected to become even more valuable moving forward
Scarce live and tentpole franchises are becoming the most valuable assets in today’s fragmented content economy. Studios and strategics are shifting toward fewer, bigger bets – properties that can scale globally and monetize across multiple formats (film → gaming → merchandise → live events, etc.).
The strategic logic is clear: own fewer, bigger franchises that travel globally and monetize across every touchpoint.
AI is expected to further compress costs – and widen the value gap
AI is already lowering the cost of production and localization, while enhancing catalog monetization through improved dubbing, discovery, and personalization. The likely outcome is that average content becomes cheaper, while great content becomes even more valuable. Most executives see AI as a net enabler rather than a disruptor and believe the potential opportunities likely outweigh the risks, provided governance and IP protections are well-managed.
M&A/deal momentum is building, and the capital stack is expanding
After a period of regulatory caution, the current administration appears more transaction-friendly, at least for those ‘in good standing.’ The newly formed Paramount Skydance (PSKY) is expected to be among the most aggressive acquirers, alongside Big Tech players such as Apple and Amazon.
Since closing in August 2025, PSKY has moved quickly, already acquiring additional sports rights and content including the UFC rights and South Park, and reportedly preparing a majority cash-and-stock bid for Warner Bros. Discovery (leaked by the WSJ in early September). Even if a full acquisition doesn’t materialize, WBD’s planned 2026 separation of its Streaming & Studios and Linear Networks business will create fresh optionality and new transaction pathways. PSKY clearly intends to scale fast to compete with large media and tech players like Disney, Netflix, and Amazon, among others. Separately, the Murdoch family’s peace accord removes the long-standing succession overhang, giving Lachlan Murdoch a cleaner runway for additional strategic M&A.
Private equity and private credit continue to anchor valuation levels and provide liquidity where strategics can’t. Areas of focus include corporate carve-outs, IP ecosystems, and creator-economy infrastructure. The ongoing securitization of IP, particularly in music and film libraries, is lowering the cost of capital and expanding the universe of possible buyers. Private credit structures are increasingly underwriting deals traditional lenders won’t touch, deepening the market for content-backed assets and accelerating deal velocity.
Regulatory tailwinds are selectively supportive
The FCC appears to be easing ownership restrictions, signaling a more permissive consolidation environment. The Paramount–Skydance approval over the summer demonstrated that the current administration can be pragmatic on deals, provided parties maintain a constructive relationship with Washington. Those out of favor, however, are likely to encounter friction and have a hard time getting transactions done.
Hanna Howard is an analyst at Gabelli Funds.
The above commentary is commentary from an FT event that appeared on September 17, 2025.
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As of June 30, 2025, affiliates of GAMCO Investors, Inc. beneficially owned 11.96% of Paramount Skydance and less than 1% of all other companies mentioned
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