After a wave of optimism to start the year, digital media M&A lost steam in the first half of 2025, as volatile markets and elevated interest rates held back what many anticipated would be a dealmaking rebound.
According to JEGI Clarity, overall deal count in the media space fell 15% in the U.S. and 33% in Europe compared to the same period in 2024, even though 2024 was also below historical norms.
“Every month this year has been lighter than last year,” said Robert Berstein, managing director at JEGI Clarity. “And we already thought last year was light.”
The culprit, according to multiple experts, was macroeconomic instability, particularly in debt markets.
“If you are a major PE player, you are using a combination of equity, cash, and debt to get deals done,” said Mark Wright, head of M&A at Prohaska Consulting. “And the first half has been volatile, with relatively high interest rates.”
That pricing climate caused buyers to pause, even amid growing pressure to consolidate.
“Digital media remains a highly fragmented industry,” Wright said. “There is massive pressure to simplify the ecosystem. Agencies want fewer players, and sellers want fewer buyers. That has not happened to the extent people expected.”
These economic headwinds have coupled with other factors, including the threat of technological disruption, to stifle dealmaking activity in the sector. While experts voiced a cautious optimism for the back half of the year, the host of variables at play leave only “jewel assets” with any sense of certainty for a healthy exit.
Structured terms and vertical focus define 1H
The deals that did go through often featured low upfront cash and heavy performance-based structures, according to Blake Saunders, managing director at Methesulah Advisors.
“Buyers are paying very little cash,” Saunders said. “They’re focused on brand equity, traffic, and monetization potential—especially in verticals that are insulated from ad-market volatility.”
Ziff Davis picked up TheSkimm to bolster newsletter-driven revenue streams in health and money. Redbrick acquired Quartz and The Inventory to expand its affiliate commerce portfolio. Other buyers targeted vertical leaders in sports (MaxPreps), dating (HER), fitness (Breakaway), and personalized content (Wonderbly).
