Tariffs are crashing the ad tech M&A party, adding headaches like volatile valuations and frantic risk rewrites—think “Game of Thrones” plot twists but with legal teams instead of dragons. Meanwhile, artificial intelligence is turbocharging everything, from ad targeting to deal scrutiny, faster than most buyers can say, “Where’s our AI bias audit?” Now, earn-outs keyed to real profits, supply chain mysteries, and legal fine print are stealing the spotlight. Curious how it all shakes out? Stick around for the details.
Although the world probably didn’t need another plot twist, tariffs and artificial intelligence are shaking up the ad tech M&A scene like a surprise cameo in a Marvel movie. Just when you thought dealmakers might get a breather, economic turbulence and a dash of algorithmic magic have re-written the script.
Tariffs and AI have crashed the ad tech M&A party, turning dealmaking into a suspense thriller with surprise twists at every turn
Mergers and acquisitions? Down. Way down. In April 2025, M&A contracts nosedived to just 2,330—numbers not seen since the early 2000s, when flip phones were still cool and nobody had heard of TikTok. The recent M&A activity at lowest level in 20 years signals growing concern about the long-term health of dealmaking in the sector.
Why the drop? Global trade wars, for starters. Tariffs slapped on by the U.S. and others have stirred up so much uncertainty that even the boldest acquirers are pausing to check their risk tolerance (and maybe their horoscopes). With every new tariff announcement, deal valuations get shakier, and everyone starts scrutinizing the fine print. The rise of AI is also playing a significant role in shifting investor priorities and influencing which companies are viewed as attractive targets.
Stock market swings only add to the drama, making M&A feel like a high-stakes game of Jenga—one wrong move, and the whole tower could come crashing down.
Meanwhile, AI is gatecrashing the party. Investors are chasing AI-driven ad tech like it’s the next big superhero franchise, hoping for efficiency gains and campaign magic. AI-powered tools are reshaping ad targeting and performance, and suddenly, every investor wants a piece of the action.
But don’t think buyers are charging in without armor. Now, due diligence means combing through supply chains for tariff traps, slapping on risk discounts, and negotiating earn-outs tied to actual profits—no more fantasy projections. The growing concerns about algorithmic fairness underscore why companies are now including bias audits in their acquisition assessments.
Legal teams are busy fine-tuning material adverse effect clauses, prepping for regulatory curveballs, and crafting price adjustments that hinge on tariff drama.
- M&A contracts are at a 20-year low.
- AI is changing what investors want.
- Tariffs force buyers to demand more protection.
- Supply chain “synergies” are the new buzzword.
- Legal teams are earning their billable hours.
In this landscape, caution is the new cool. Tariffs and AI aren’t just upending ad tech M&A—they’re rewriting the rules, leaving everyone guessing what the next plot twist will be.
