AI news story
Software Deals to Come Back This Year: Citi's Goel
Pankaj Goel, co-head of technology investment banking at Citi, joins Scarlet Fu on "Bloomberg Markets." They discuss the rise of AI and the difficulties in the software industry. (
Editor's take
Citi's co-head of technology investment banking predicts a return to significant software deal-making in the current year, driven by renewed investor confidence in the sector.
This forecast is crucial as the software M&A market has been subdued, with companies like Microsoft and Google shifting focus to AI integration rather than large-scale acquisitions. The potential uptick signals a potential recalibration of valuations and a renewed appetite for strategic consolidation as AI capabilities become a more integrated factor in enterprise software.
Investors and industry observers should monitor which sub-sectors of software experience the most M&A activity, particularly those directly supporting AI infrastructure or offering AI-powered solutions. The success of these deals will hinge on their ability to demonstrate clear paths to profitability and integration, moving beyond the initial AI hype cycle.
Signal score: 6
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Original reporting
This story summarises reporting published by Bloomberg. Read the original article at Bloomberg.