Most deals are expected to be mid-sized, as companies in emerging segments have yet to achieve meaningful scale. The possibility of a large deal cannot be entirely ruled out, though it remains less likely, they said.
The last large transaction in the sector came in 2024, when Star India and Viacom18 merged to form an $8.5 billion media behemoth. Another potential industry-shaping deal, between Sony Pictures Networks India and Zee Entertainment, was called off due to regulatory pressures and disagreements over leadership.
“Deal volume in 2026 will be driven by factors such as scale/ market share, efficiency and IP value. AI assets with global use cases will be prominent targets. Traditional businesses desirous of expanding their offerings to sustain their relevance will also drive acquisitions and/or partnerships,” said EY India leader media and entertainment practice Ashish Pherwani.
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According to EY’s M&E report, deal volumes rose 8% to 105 transactions in 2025 from 97 in 2024. However, total deal value declined 76% to Rs 20,700 crore from Rs 86,700 crore, largely due to the absence of large-ticket deals such as the Star-Viacom18 merger.
Excluding that transaction, the EY report noted that 2025 deal value reflected a 27% increase over the adjusted 2024 base, indicating underlying momentum.Mid-sized transactions in the Rs 100–500 crore range more than doubled year-on-year, signalling a build-up of scalable assets, as per EY. Large deals above Rs 500 crore were limited to six but accounted for 73% of the total value, underscoring continued concentration.
“Most deals are likely to be in the Rs 500–1,000 crore range, while larger transactions, if they materialise, are unlikely to exceed $500 million to $1 billion. This is because much of the consolidation in traditional media has already taken place, and in digital space there is no scale as it is dominated by tech giants,” said Elara Capital executive vice-president Karan Taurani. “That said, there is a long tail in segments like linear TV, OTT and cinema exhibition which will start seeing consolidation.”
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EY data show deal volumes were dominated by new media, while deal value remained concentrated in traditional segments. Digital media and sports accounted for 60% of the deal volume, while gaming, sports, VFX and AI contributed nearly three-fourths of the value.
The report said the next phase of value creation will be driven by content, IP and platform consolidation, followed by gaming and sports, particularly in premium franchise ecosystems, as well as AI-first companies. The digital advertising ecosystem is also expected to see increased M&A activity.
