{"id":664374,"date":"2025-04-22T10:30:27","date_gmt":"2025-04-22T07:30:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback\/"},"modified":"2025-04-22T10:30:27","modified_gmt":"2025-04-22T07:30:27","slug":"tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback\/","title":{"rendered":"Tariff turmoil may have killed the tech M&#038;A market\u2019s comeback"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3844fc8f40f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3844fc8f40f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback\/#Volatile_valuations\" >Volatile valuations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback\/#Not_a_total_deal_drought\" >Not a total deal drought<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">The tech market doesn\u2019t need to be soaring up and to the right to foster healthy M&amp;A activity. Deals can get done even in down markets. But can M&amp;A thrive in an uncertain market? That\u2019s a harder question.<\/p>\n<p class=\"wp-block-paragraph\">The venture market soured in 2022 as fundraising and exits largely dried up. Since then, venture investors have been waiting in the wings for exits, both M&amp;A and IPOs, to return. While the past few years didn\u2019t deliver, heading into 2025, there was reason to be hopeful.<\/p>\n<p class=\"wp-block-paragraph\">Late-stage startup valuations had started to recover, and a handful of strong deals gave the impression that a rebound might be underway. On top of that, the Trump administration painted itself as far more M&amp;A-friendly than Joe Biden\u2019s, which had previously blocked several high-profile deals on antitrust grounds.<\/p>\n<p class=\"wp-block-paragraph\">Deals did start flowing at the beginning of 2025. According to PitchBook data, there were 205 U.S. startup acquisitions in the first quarter alone, and many of them were notable.<\/p>\n<p class=\"wp-block-paragraph\">In March, CoreWeave agreed to pay $1.7 billion for Weights &amp; Biases. The following week, ServiceNow announced its plans to acquire Moveworks <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.reuters.com\/technology\/servicenow-buy-ai-firm-moveworks-29-billion-tap-new-customers-2025-03-10\/\">f<\/a><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/servicenow-buy-ai-firm-moveworks-29-billion-tap-new-customers-2025-03-10\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">o<\/a><a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.reuters.com\/technology\/servicenow-buy-ai-firm-moveworks-29-billion-tap-new-customers-2025-03-10\/\">r $2.9 billion<\/a>. And later that month, Google announced it was buying cybersecurity startup Wiz for $32 billion.<\/p>\n<p class=\"wp-block-paragraph\">Other first-quarter acquisitions included the sale of proptech Divvy Homes to the investment firm Brookfield for $1 billion and the sale of Next Insurance to Munich Re for $2.6 billion.<\/p>\n<p class=\"wp-block-paragraph\">But then everything started to change in April.<\/p>\n<p class=\"wp-block-paragraph\">On April 2 \u2014 dubbed \u201cLiberation Day\u201d \u2014 Donald Trump announced sweeping tariffs against nearly every major trading partner. Tech companies saw their stock plummet and Q1\u2019s progress started to look like a blip.<\/p>\n<p class=\"wp-block-paragraph\">A week later, Trump announced a 90-day pause on these tariffs, but the market now sits in a state of limbo.<\/p>\n<p class=\"wp-block-paragraph\">\u201cHeading into 2025 as you may recall, people were almost giddy, thinking things are really going to pick up in 2025,\u201d Stellar Tucker, a managing director at Truist Securities, told TechCrunch. \u201cI don\u2019t think much of that has really materialized. The outlook right now is pretty tepid for 2025, which is unfortunate, because I think everyone went into 2025 thinking it was going to be a much better year than the past few that we\u2019ve been suffering through.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-volatile-valuations\"><span class=\"ez-toc-section\" id=\"Volatile_valuations\"><\/span>Volatile valuations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"wp-block-paragraph\">There are a few reasons why a volatile or uncertain public market can stall M&amp;A activity.<\/p>\n<p class=\"wp-block-paragraph\">For one, many of the most active acquirers \u2014 large public tech companies \u2014 are directly affected by the tariff uncertainty. Their stock prices have taken hits, and some of their core products or supply chains could face tariff impacts.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThe large public companies, they\u2019re going to have a really tough time with depressed valuations in their stock,\u201d said Kyle Stanford, the director of U.S. venture capital research at PitchBook, in an interview with TechCrunch. \u201cEven if they have cash, they don\u2019t want to put it to work in an uncertain market and kind of spook investors,\u201d Stanford said. Added Stanford, stock buybacks are \u201cprobably something that they look at instead of company purchases.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Another hurdle is price. For the past few years, uncertainty around valuations has lingered, with many late-stage startups no longer worth their frothy 2021 valuations. But what they are actually worth isn\u2019t concrete either.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThere\u2019s a lot of back-and-forth leading to significant uncertainty,\u201d said Ronan Kennedy, who leads the capital advisory team for the investment firm B Capital. \u201cBusinesses don\u2019t want to make a decision when waiting a few days could have led to a different decision\u201d or valuation.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-not-a-total-deal-drought\"><span class=\"ez-toc-section\" id=\"Not_a_total_deal_drought\"><\/span>Not a total deal drought<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"wp-block-paragraph\">Despite the slowdown, some deals will get done.<\/p>\n<p class=\"wp-block-paragraph\">Thomas Earnest, a partner at the law firm Mintz who focuses on tech fundraising and M&amp;A, told TechCrunch that any company that has opportunistically put feelers out to sell this year is likely putting a pause on that effort. It\u2019s a sharp contrast from what Earnest told TechCrunch just a few weeks back when he predicted an uptick in M&amp;A.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThe world was a much different place in January than it was in March, and now we\u2019re in a totally different place than we were three weeks ago,\u201d Earnest said. \u201cYou\u2019re not gonna go buy a house if you [fear] that in a week\u2019s time it\u2019s gonna be worth 20 or 30% [less] than what you paid for it, and I think that really could ring true in the M&amp;A market.\u201d<\/p>\n<p class=\"wp-block-paragraph\">That said, not all M&amp;A is driven by opportunity. Earnest said startups that are unable to raise their next round of funding will still need to pursue acquisitions, likely at lower valuations.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThey\u2019ve probably been trying to hold out for the venture market to come back, and if it doesn\u2019t, then those companies are gonna need to get comfortable with either down rounds or acquisitions at discounts,\u201d Earnest said. \u201cI think that you\u2019ll see deal volume there.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Well-capitalized AI companies that are private and pumped up with cash are likely to snap up smaller companies, too, Earnest added. Just one case in point: OpenAI, which just raised a $40 billion funding round at the end of March, is rumored to be acquiring AI coding startup Windsurf for $3 billion.<\/p>\n<p class=\"wp-block-paragraph\">As the second quarter unfolds, PitchBook\u2019s Stanford fears that the events of the first few weeks of April could have already sidelined M&amp;A activity for the rest of the year. He added that if these tariffs resume in early July \u2014 after the 90-day pause \u2014 or new trades deals are struck in the meantime, it may not matter much.<\/p>\n<p class=\"wp-block-paragraph\">That stability likely wouldn\u2019t come until the summer, a historically slow period for activity. Then comes fall, the fourth quarter, and the end-of-year holiday slowdown.<\/p>\n<p class=\"wp-block-paragraph\">That leaves a tiny window for strong M&amp;A deals to get done.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI think the prospect of a stable 2025 seems pretty low at this point just because of the changes,\u201d Stanford said. \u201cWe all know how much the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> has changed in the past two weeks, what and how small or steep, who\u2019s getting exceptions or what\u2019s not getting exception. And [it] really creates a lot of uncertainty.\u201d<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/category\/technology\/\" target=\"_blank\" >Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techcrunch.com\/2025\/04\/21\/tariff-turmoil-may-have-killed-the-tech-ma-markets-comeback\/\" target=\"_blank\" >Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The tech market doesn\u2019t need to be soaring up and to the right to foster healthy M&amp;A activity. Deals can get done even in down markets. But can M&amp;A thrive in an uncertain market? That\u2019s a harder question. The venture market soured in 2022 as fundraising and exits largely dried up. Since then, venture investors&#8230;<\/p>\n","protected":false},"author":1,"featured_media":664375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2025\/04\/GettyImages-2154374492.jpg?resize=1200,675","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[155218,151537,83214,155780,70917,93342,67874,153168,71745,152569],"class_list":["post-664374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-coreweave","tag-government-policy","tag-mergers-and-acquisitions","tag-servicenow","tag-startups","tag-tariffs","tag-united-states","tag-vc","tag-venture-capital","tag-wiz"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/664374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=664374"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/664374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/664375"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=664374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=664374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=664374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}