Blockbuster Electronic Arts deal lifts Wall Street's spirits, but hiring remains spotty

Core Insights - Wall Street's M&A activity is experiencing a rebound, highlighted by Electronic Arts' $55 billion take-private deal, the largest since 2007 [2][4] - Despite the uptick in M&A transactions, the hiring landscape in investment banking remains cautious and has not fully recovered to pre-pandemic levels [4][5] M&A Activity - The Electronic Arts deal, facilitated by Goldman Sachs and JPMorgan, signifies a significant milestone in the M&A market [2] - Global dealmaking has seen a 32% increase in volume year-to-date, totaling $2.95 trillion, although the total number of deals has decreased by nearly 9% [7] Hiring Trends - Hiring in investment banks is described as having shifted from negative to flat, with a focus on senior origination roles rather than support staff [5][11] - Certain sectors, such as healthcare, energy, and ESG finance, are experiencing aggressive hiring, while overall job growth remains modest [12] Impact of AI and Fintech - Artificial intelligence is influencing financial technology dealmaking and hiring, with firms creating dedicated teams for AI and digital infrastructure [12][13] - KPMG reported $44.7 billion in fintech investment in the first half of 2025, including $7 billion for AI-focused firms, although this represents a decline from the previous period [14] Equity Capital Markets - Hiring in equity capital markets is lagging behind M&A, with flat to declining incentives for equity underwriting [15] - Projections indicate that while most bankers may see modest pay increases, advisory and equity underwriting bonuses are expected to be flat to down [16] Buyside Optimism - There is optimism in buyside hiring, particularly among private equity firms eager to engage in deals, which may lead to robust hiring plans for 2026 [17]