Key M&A Insights and Public Market Trends
Following a strong Q4 2025, deal activity across the Digital Media and Marketing Technology landscape slowed, impacted by rising geopolitical tensions and broader macroeconomic uncertainty. In Q1 2026, total deal count reached 103, representing an (11%) YoY decline. Similarly, total scaled deals (>$100mm EV) fell to 16, down from 23 YoY.
Public markets sold off sharply in Q1, with the LUMA.A index declining (21%). Perion was the only positive performer in the cohort, rising +4%. The LUMA.M index experienced similar volatility, falling (27%), with most constituents down more than (20%). Ibotta and ComScore were the only bright spots, gaining +32% and +7%, respectively. Both indices underperformed the Nasdaq, which declined (7%).
Private financing activity continues to be driven by AI-focused capabilities. This was highlighted by Runway’s $315mm Series E, valuing the Company at $5.3bn, and OpenAI’s $122bn funding round at quarter-end, valuing the Company at $852bn post-money.
Looking Ahead:
We expect M&A activity to normalize as geopolitical and macroeconomic uncertainty becomes clearer. In the interim, we anticipate strategics to remain active, selectively pursuing opportunities to build differentiated capabilities, expand into key growth channels, and focus on AI-driven outcomes.
Q1 M&A Activity Highlights:
- Total Q1 2026 deal volume declined (11%) YoY, and (15%) sequentially
- Ad Tech M&A: Increased by one deal YoY, but down (19%) QoQ
- MarTech M&A: Was down (14%) YoY, and down (8%) QoQ
- Notable Transactions:
• Mubadala Capital’s $6.2bn take-private of Clear Channel Outdoor
• Smartly’s acquisition of INCRMNTAL
• Paramount’s $110bn acquisition of Warner Bros. Discovery
• Scopely’s ~$1bn acquisition of Loom Games
• Genius Sports’ ~$1.2bn acquisition of Legend
Public Markets & LUMA Indices Highlights (Market Data as of 3/31/2026)
- LUMA.A: Down (21%) in Q1. Perion was the only gainer in the cohort, up +4%, while broad-based weakness weighed on the index, led by Unity, which fell (50%), followed by Digital Turbine, AppLovin, and The Trade Desk, each down approximately (40%).
- LUMA.M: Declined (27%), weighed down by the majority of constituents, with most down more than (20%). The only gainers in Q1 were Ibotta +32% and ComScore +7%.
- Despite the selloff, earnings across Ad Tech and MarTech were generally positive in Q4 2025, with the majority of both cohorts meeting or exceeding consensus revenue and EBITDA estimates.
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