Key M&A Insights and Public Market Trends
Despite a mid-year, tariff-related slowdown, M&A activity in the Digital Media and Marketing Technology ecosystem continued to build momentum through the end of the year. Increased demand for AI capabilities, shifting media consumption patterns, and improving macro conditions drove a resurgence in strategic dialogue, resulting in the highest deal volume in five years.
In 2025, total deal volume reached 469 transactions, up +13% versus 2024. That said, M&A activity in the quarter was up +6% from a strong Q4 2024. Ad Tech and MarTech recorded 53 scaled deals (>$100mm EV), up +15% year-over-year compared to 46 in 2024. Of these, 35 of the 53 scaled deals were strategic acquirers, a +40% increase compared to 2024.
Both cohorts within our coverage declined in Q4 and throughout 2025. The LUMA.A Index declined (8.4%) in Q4 2025, finishing the year down (2.3%). The LUMA.M Index was also down, falling (7.1%) in Q4 and (18.1%) for the full year.
Private financing activity continued to be heavily concentrated in AI-driven capabilities. AI emerged as the clear priority for venture investors in 2025, driven by the potential for outsized returns. For the first time, mega-deal investment in AI companies ($73bn) exceeded capital invested in non-AI companies ($47bn).
Looking Ahead:
We expect M&A activity to accelerate over the next 12 months, as increased participation from strategic acquirers reflects growing buyer confidence in pursuing new capabilities. Additionally, the increasing importance of AI-driven capabilities, expansion into new geographies and channels, and improving macroeconomic visibility support a constructive backdrop for M&A activity.
Q4 and Full Year 2025 M&A Activity Highlights:
- Total 2025 deal volume: Q4 up +6% YoY; Full Year 2025 up +13%
- Ad Tech M&A: Q4 up +4% YoY; Full Year 2025 up +8%
- MarTech M&A: Q4 flat YoY; Full Year 2025 up +16%
- Notable Q4 2025 Transactions:
• Broadsign’s acquisition of Place Exchange
• Life360’s $140mm acquisition of Nativo
• Pinterest’s acquisition of tvScientific
• Cvent’s $400mm take-private of ON24
• Adobe’s $1.9bn take-private of Semrush
Public Markets & LUMA Indices Highlights (Market Data as of 12/31/2025)
- LUMA.A: Declined (8%) in Q4 and finished the year down (2%) for the year. Strong gains from Digital Turbine (+196%), AppLovin (+108%), and Unity (+97%) offset broader weakness across the index.
- LUMA.M: Declined (7%) in Q4, and (18%) in 2025. Only seven companies in the cohort posted positive returns for the year, led by Shopify (+51%) and Twilio (+32%).
- Earnings across Ad Tech and MarTech were generally constructive. In Q3 2025, 15 of 20 Ad Tech companies and 17 of 20 MarTech companies met or exceeded consensus revenue estimates.
- The majority of companies in both cohorts raised or reaffirmed full-year guidance, signaling confidence heading into Q4 earnings.
Download the full report for detailed insights on Ad Tech, MarTech, and Digital Content, including the following:
- Quarterly deal activity and sector trends
- Public market performance and earnings highlights
- Public valuation and operational benchmarking
- Private financing trends and investor activity