USA – CALIFORNIA Trends and Developments Contributed by: Mehdi Khodadad, Dan Clivner, Vijay Sekhon and Matthew Thompson, Sidley Austin LLP
Entertainment, sports, and media Overview of California entertainment, sports and media M&A market California remains a leading hub of US entertainment, sports and media deal making, reflecting its high con - centration of talent, content owners, distributors and sports properties. In 2026, transactions will focus on control of premium intellectual property, content monetisation opportunities and direct audience reach, alongside continued scale considerations. Private equity (including private credit) and institutional capital will continue to play a central role in deal structures and competitive dynamics. Drivers of entertainment and media M&A activity Consolidation remains a significant driver of enter - tainment and media M&A. Transformative deals, including the Paramount-Skydance combination and Paramount’s anticipated acquisition of Warner Bros. Discovery (WBD), reflect a push to build scaled plat - forms with deeper libraries, broader distribution and more durable monetisation models. This activity is unfolding amid increased regulatory attention in California. In February 2026, Attorney General Rob Bonta called for a “full and robust review” of the Paramount-WBD deal, suggesting potential impacts on deal timing, structuring and execution not only for the Paramount-WBD deal, but also for large- scale media consolidations with California ties. Simultaneously, media companies are reconfiguring their portfolios by separating higher-growth assets from more mature or declining businesses, such as linear television assets. Comcast’s spin-off of a port - folio of cable networks into publicly traded Versant, for example, reflects a shift toward isolating and unlocking value across distinct business lines. These separations will likely create additional opportunities for follow‑on M&A, divestments, joint ventures and
and may extend transaction timelines where addition - al review is required. These developments reflect a broader national trend toward heightened scrutiny of private investment in healthcare markets and are already influencing deal strategy. Investors and acquirers are increasingly factoring regulatory review timelines into transaction planning and due diligence. In some cases, parties are reassessing transaction structures or approval processes. Market dynamics influencing exits and deal strategy Despite these regulatory complexities, California’s life sciences M&A market remains highly active. Strate - gic acquirers continue to seek innovative therapies, data-driven clinical tools, and enabling technologies that can accelerate drug development and commer - cialisation. Acquisition activity is also being driven by several industry dynamics, including pharmaceutical companies seeking to offset the impact of an expect - ed “patent cliff” affecting roughly 190 drugs projected to lose patent or regulatory exclusivity by 2030, as well as growing interest in artificial intelligence-enabled research tools and targeted therapeutic platforms such as oncology and metabolic treatments. At the same time, venture-backed biotech companies facing capital constraints may view strategic sales as an attractive path to liquidity, particularly where large pharmaceutical companies are seeking targeted acquisitions to address looming patent expirations and pipeline gaps. In that environment, corporate M&A has increasingly served as an exit pathway for start-ups facing a more challenging funding environ - ment and limited public market opportunities. California will likely remain a focal point for life sci - ences deal making in the years ahead. California’s concentration of scientific aptitude, venture capital, and leading research institutions continues to pro - duce acquisition targets at every stage of develop - ment. Even as deal activity remains strong, evolving regulatory oversight is reshaping the practical realities of completing life sciences transactions in the state, prompting investors to adopt more disciplined time - lines and transaction structures as they navigate an increasingly complex M&A landscape.
strategic transactions. Trends in sports M&A
In the sports sector, private equity and institutional investors will continue to play a growing role in own - ership and financing structures. Capital is flowing into all corners of the sports landscape, including legacy sports assets and emerging and women’s
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