Ad Tech Briefing: The 2025 M&A resurgence starts softly, not loudly

As anticipated earlier this year, the ad tech industry saw a resurgence in mergers and acquisitions. With the hope of a more business-friendly U.S. administration, bankers and corporate development teams were optimistic about a rebound in M&A activity after a lull in 2023–24. The year started off strong with T-Mobile leading a series of acquisitions, including Vistar Media for approximately $600 million and later Blis for $175 million, showcasing telcos’ interest in diversifying into ad-funded ventures.

However, by late September, it became evident that the forecast for 2025 was more nuanced than expected. Market experts predict a “muddled” year with deal activity but not the lucrative boom seen in late 2020 to early 2022 when public listings dominated the headlines. While strategic acquisitions are on the rise, valuations and deal sizes are more restrained compared to the post-Covid peak period.

The landscape of acquisitions in 2025 reflects a shift towards smaller tuck-ins, data/identity expansions, and capability buys aimed at enhancing product offerings incrementally rather than undergoing a drastic transformation in financial performance overnight. For instance, Verve Group’s acquisition of Captify for around $27 million was seen as a strategic move to strengthen synergies at a modest multiple rather than a major market-shifting deal.

Additionally, there has been a notable trend towards specialty and workflow asset acquisitions in 2025. Companies like Magnite acquiring streamr.ai to boost AI-assisted creative and SMB on-ramps in CTV, and the consolidation in the creative tech sector, such as Rembrand merging with Spaceback, reflect the “build vs. buy” approach prevalent this year. Companies are opting for tuck-in acquisitions to expedite time-to-market rather than engaging in high-profile deals.

Despite the resurgence in ad tech M&A, multiple factors like margin pressure, evolving funding costs, and AI uncertainties have influenced the market dynamics. Ad tech firms are no longer able to command the same take-rates as before, leading to rational pricing for assets that fill product gaps or unlock new channels. The slow and steady growth trajectory of ad tech M&A in 2025 suggests a more pragmatic approach by buyers, focusing on tangible earnings accretion rather than speculative opportunities.

While the M&A landscape remains steady, public-market aspirations are still alive. MNTN’s IPO in May briefly reignited hopes for quality assets to go public, albeit with a higher demand for profitability and transparency over revenue growth. Companies like Mediaocean are viewed as potential candidates for IPOs once the ad tech market reopens for listings, signaling a cautious yet optimistic outlook for the market’s future.