People consume entertainment on an unprecedented level today. They watch TV shows on their commute, listen to podcasts at the gym and play augmented reality games at cafes. As demand for content and digital recreation continues to climb, media and technology companies are increasingly using M&A as a key part of their growth strategy—whether to expand their content offerings, acquire new distribution platforms or be first to market with an emerging technology.

Old definitions of media, entertainment and technology are being erased as sectors converge. Apple, once known purely as a device maker, has a powerful content distribution system now via Apple Music and Apple TV. Facebook, previously thought of strictly as a social network, is redefining its value proposition with its strength as a content engagement platform, as evidenced by its success with video content and its ecosystem of services and products, including WhatsApp, Instagram and Oculus. Comcast, formerly a cable company, now owns TV networks, a film studio, digital-first studios and even game developers. Firms that do not expand into synergistic new segments often end up being purchased themselves— otherwise, they will become irrelevant.