Aldrin Brown

What began as a slightly improved market for North American telecommunications M&A in 1H24 has picked up steam in recent months, sending transaction volume to levels not seen in several years.

Defense sector dealmaking of USD 87.6bn so far this year puts 2024 on track to be the third highest by volume, behind only 2021 and 2015, according to Mergermarket data. With three and a half months still left, 2024 has already surpassed M&A volume for the whole of 2023 and 2022.

DirecTV, already marked down sharply from the USD 67bn that AT&T [NYSE:T] originally paid for the asset in 2015, could at the right price still attract interest from potential buyers, said sector advisors.

North American private equity (PE) activity began to stage a comeback in 1H24, according to Mergermarket data. But with exits yet to come through in any significant quantity from assets sitting at high valuations in 2020- and 2021-vintage funds, market participants are not expecting a rush back to the dealflow volumes seen in 2021 and 2022.