The media industry faces a wave of consolidation in 2026, fueled by declining linear TV revenue, intense streaming competition, AI investment needs, falling interest rates, and a more relaxed regulatory environment.
Analysts from AlixPartners and PwC forecast more than $80 billion in media and entertainment M&A deal value for 2026, with heightened activity across streaming, broadcasting, and tech integrations.
Major Deals Expected to Close in 2026Netflix's acquisition of Warner Bros. Discovery's studios and streaming assets: This $82.7 billion deal (announced December 2025) is on track to close in 2026 after WBD spins off its cable networks (Discovery Global, including CNN and TNT) in Q3 2026. It combines Netflix's subscriber base with WBD's content library (HBO, DC, Harry Potter).
Nexstar's $6.2 billion purchase of TEGNA: Expected to close in the second half of 2026, this would expand Nexstar's local TV footprint significantly, pending FCC approval amid relaxed ownership rules.
Key Trends Driving 2026 Activity
- Streaming consolidation: Companies seek scale to compete with tech giants; bundles, partnerships, and smaller tech-focused deals rise as alternatives to mega-mergers.
- Broadcast and local TV consolidation: Deregulation encourages deals like Nexstar-TEGNA; more station mergers possible.
- Cable carve-outs and spin-offs: Legacy networks separate for sales or partnerships.
- AI and tech crossovers: Firms acquire AI capabilities; private equity drives smaller deals.
While antitrust risks persist for large transactions, the industry adapts to cord-cutting and streaming dominance, with outcomes hinging on economic stability and approvals.