Software sell-off disrupts M&A, IPO deals


Underneath the volatility is anxiety about artificial intelligence (AI) reshaping software business models, dealmakers said. — Reuters

NEW YORK: A broad sell-off in software stocks is starting to stall deal-making and initial public offerings (IPOs) in the sector as volatility makes valuations unreliable and potential buyers cautious, about a dozen financial advisers and dealmakers have told Reuters.

The months-long rout deepened last week, with the S&P 500 software and services index posting its worst three-month performance since May 2002, Evercore ISI equity strategists said.

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