00:00 Josh Lipton
With the first half of the year coming to a close, we’re taking a look at the M&A landscape. New data from PWC highlight that about 30% of companies are pausing or revisiting pending deals due to tariffs. We’re bringing in Yahoo Finance banking reporter, David Hollerith. David.
00:20 David Hollerith
Hey Josh. So, um, you know, it’s kind of a mixed picture with the deals market right now. We’re seeing that the number of deals year to date compared to last year is actually, um, down, but total volume or in dollar amount, the amount of dollars going into deals so far this year is actually up. So it’s fairly confusing, and we have two big trends that are sort of shaping this market. The first is tariffs or sort of companies’ reaction to tariffs, and that goes back to the PWC stat that you just put out, um, which is just that, um, you know, they’re having to rethink their models and uh, you know, whether or not they can actually, um, do a deal without, uh, you know, taking some sort of impact from tariffs that they didn’t think. And that’s just if they’re in an industry that might be sort of resistant to tariffs or exposed to tariffs, excuse me. Um, and then we have AI, and AI is a huge one, obviously, because, um, tech at this point makes up 50% of, uh, uh, US M&A so far year to date, and that’s up from about 41% from, uh, the same period last year. And within tech, um, AI is kind of taking over in these few big deals that we’re seeing. Um, OpenAI, uh, the investment from, uh, SoftBank, as well as, uh, Salesforce, um, purchasing Informatica, uh, Meta’s, uh, purchase of Scale AI. I could sort of go on with that. But so it’s a market where a lot of the smaller players aren’t really making decisions yet, but it looks not too bad in dollar amount just because we’ve seen all these big players do these AI plays effectively.
02:29 Josh Lipton
All right, David. Thank you for that setup. Appreciate it.
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