USA – CALIFORNIA Trends and Developments Contributed by: Mehdi Khodadad, Dan Clivner, Vijay Sekhon and Matthew Thompson, Sidley Austin LLP
sports properties with strong growth potential and expanding media value. League One Volleyball, for example, raised USD100 million in a funding round led by Atwater Capital alongside other institutional inves - tors. Newer platforms such as Unrivaled have also attracted significant venture capital, and expansion activity in leagues such as the National Women’s Soc - cer League – where new franchises have commanded record expansion fees – reflects investor demand for scalable sports assets across stages of development. The market for sports media rights is also undergo - ing rapid change. Traditional broadcast models are being supplemented, and in some cases displaced, by direct-to-consumer and streaming arrangements, with platforms competing aggressively for premium rights. Major rights packages now in effect – such as the NBA’s multi-platform agreements spanning ABC/ ESPN, NBC/Peacock and Prime Video, and Para - mount’s long-term UFC deal – demonstrate how live sports are being treated as strategic assets for sub - scriber growth, advertising and platform differentia - tion. Sports transactions are also intersecting more closely with adjacent sectors, including media production, data analytics and live entertainment infrastructure, as stadiums and related developments are positioned as multi-use entertainment destinations. Trends in music M&A Catalog acquisitions continue to be a major driver of music M&A, though the structure of those transac - tions is evolving. Major record labels and publishers are increasingly partnering with private equity and institutional investors, using joint ventures and invest - ment platforms to scale acquisition strategies. This approach is reflected in Warner Music Group’s joint venture with Bain Capital to acquire up to USD1.2 bil - lion of music catalogs and Sony Music Group’s part - nership with GIC (reported to target USD2-3 billion).
Music assets are also being assessed as part of wider intellectual property ecosystems, with value driven by synchronisation, licensing and cross-platform mon - etisation. Universal Music Group’s partnership with WTSL reveals a focus on expanding music-related IP into film, television, fashion, consumer products and branded experiences. WBD’s spin-off of its music publishing assets into a joint venture backed by a consortium of private equity investors also highlights the importance of broader exploitation and active management of music rights. This emphasis on mul - ti-channel monetisation remains a key factor in how assets are valued and structured in current transac - tions. Conclusion California’s corporate M&A market in 2026 reflects the breadth and vibrancy of the state’s economy. Across each of the sectors examined in this article – venture capital and AI, M&A and private equity, life sciences, and entertainment, sports, and media – a set of common themes emerges. Capital continues to flow toward innovation, but with greater discipline and selectivity. Regulatory complexity, whether at the federal or state level, is no longer a background consideration but a front-end driver of deal strategy, structure, and timing. And the pathways to liquidity and exit are diversifying, as market participants adapt to an environment in which traditional routes – the IPO, the straightforward strategic sale – are comple - mented by alternative structures like continuation vehicles, structured secondaries, sponsor-to-sponsor transactions, and strategic option deals. For deal makers and their advisors, the California mar- ket rewards preparation, sector expertise, and a clear- eyed understanding of the regulatory and commercial landscape. Companies that can demonstrate defensi - ble technology, regulatory readiness, and operational resilience will continue to attract premium valuations. Those that cannot will face longer processes, tougher negotiations, and greater valuation pressure. As the state’s leading industries continue to evolve, California will remain at the centre of the most consequential M&A activity in the United States.
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