If you thought the merger mania would cool down after 2025, think again. Wall Street dealmakers are gearing up for another year of blockbuster transactions after closing out what might be the most impressive year for big deals in recent memory.
Last year saw 68 transactions that each topped $10 billion, pushing global M&A volume to its highest point since the pandemic threw everything into chaos. More tellingly, the average deal size climbed to nearly $227 million, a level not seen since 1980. That's not just activity, that's confidence.
Ivan Farman, global co-head of M&A at Bank of America, explained the significance to The New York Post: "Large deals are driving the market. And when you see big deals, it's a sign of CEO and boardroom confidence."
The headline grabbers included some truly massive moves. Netflix dropped $72 billion to acquire Warner Bros. Discovery's studios and HBO Max streaming service. Union Pacific and Norfolk Southern merged in another $72 billion deal. And Electronic Arts announced plans to go private in a $55 billion transaction, highlighting how private capital is increasingly playing in the big leagues.
What's perhaps most interesting is what didn't slow things down. Despite ongoing concerns about President Trump's tariff policies, dealmaking barely took a breath, even during the typically quiet Thanksgiving period. Farman expects this momentum to carry through 2026 across multiple sectors.
The surge in mega-deals represents more than just big numbers. It signals a fundamental shift in corporate confidence after the pandemic-era economic turbulence. The growing role of private capital in these massive transactions also suggests we might see market dynamics continue evolving, with more companies potentially choosing the private route.
For now, despite geopolitical uncertainties lurking in the background, the deal machine keeps humming along. If 2025 was any indication, 2026 could be just as busy for investment bankers.
