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The Big Apple’s M&A Scene: A Mixed Bag

Hey, folks! As we wrap up the first half of the year, let’s dive into the M&A landscape. New data from PwC reveal that about 30% of companies are hitting pause or rethinking deals because of those pesky tariffs. Joining me is Yahoo Finance’s very own David Hollerith. So, David, what’s shaking?

A Bit of Juggling: Deals Drooping, But Dollars Up

Hey Josh. You know, it’s a mixed picture out there. The number of deals, compared to last year, is down. But, curiously, the total volume in dollars? That’s up. A real head-scratcher, right? Two big trends are steering this ship, so let’s break it down.

Tariffs: The Elephant in the Room

First up, tariffs. Companies are really feeling the heat here. They’re revisiting their models, asking if these deals can survive without a tariff hit. If you’re in a tariff-exposed industry, you’re doing some serious soul-searching right now.

AI: The Techie Takeover

Now, onto AI. Tech is a monster, making up 50% of U.S. M&A this year, up from 41% last year. What’s the deal with AI? Let’s talk about heavyweights like OpenAI’s partnership with SoftBank, and Salesforce snapping up Informatica. Then there’s Meta, eyeing Scale AI. The smaller folks? They’re waiting in the wings, watching the dollar bills stack up as the big players make their moves in AI.

Dollars Are Talking

So, while smaller players hesitate, the big bucks from these major AI deals keep the dollar amounts looking healthy. It’s bizarre but true. The dollars keep flowing thanks to tech giants diving into AI.

That’s the lowdown, folks. A real mixed bag for M&A, with tariffs playing spoiler, and AI leading the charge. Thanks, David, for the insights!

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