A shift in regulatory winds has ushered in a new wave of large-scale M&A in media. Media, tech, and private equity players are moving aggressively to take advantage of the change, competing to lock down iconic IP, attractive customer bases, and prized production capabilities. That’s playing out in everything from the intense competition among major media players for Warner Bros. Discovery to Nexstar’s $6.2 billion acquisition of Tegna—a purchase that creates an even larger local broadcast media giant, with more than 250 stations in 44 states. Such deals might not have happened under previous guidelines that sought to limit concentration.

In this more competitive environment, the bar for diligence is rising fast. Winning bidders are grounded in a high-fidelity view of both cost and revenue synergies so that they can underwrite with confidence. Historically, media dealmaking was constrained by limited information and access. That era is over: Precision and rigor are now essential.

AI and data-driven tools are reshaping what’s possible in diligence. Savvy acquirers are using them to size up a target’s cost base, scraping and analyzing public sources such as LinkedIn to map workforce structures and spending profiles well before any formal bid. In one recent deal, a buyer deployed these tools to estimate labor costs with such accuracy that after the close, the forecast was within 90% of the actuals.

While cost synergies shape the bid, revenue synergies are increasingly the differentiator between winning and falling short. In media, they’re often central to the growth and transformation story post-deal. Take streaming, for example: Merging services without understanding the overlap of customer segments risks missing opportunities. Advanced diligence can quantify the overlap, highlight Day 1 selling opportunities, and suggest where and how a combined service could outperform in the market. Detailed surveys can spotlight which customer segments have the most upside in a newly combined offering.

What does this mean for companies looking to tap into more advanced diligence to win in today’s M&A landscape?

• Invest early in advanced diligence capabilities. If you’re not using them, understand that others are and that they may be gaining a competitive edge with sharper, faster reads on a target’s operations.
• Balance cost and revenue rigor. While cost synergies remain essential to shaping a competitive bid, a robust view of revenue synergies often determines who comes out ahead. In addition to understanding audience overlap, that means identifying new segments for growth and defining how a combined offering can outperform in the market.
• Look beyond integration for value creation. A broader diligence lens can uncover opportunities to capture standalone value through pricing strategies, margin improvements, or new products and services.

As deal competition intensifies, the ability to bid with conviction becomes a real advantage. Advanced diligence creates greater clarity, builds confidence, and positions acquirers to move decisively when it matters most.