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As the restrictions on cross (industry) ownership and service provision were removed by deregulation and technological progress, the technology, media and telecommunications (TMT) industry embarked on the most fundamental change in its history and a massive wave of mergers and acquisitions followed. This paper analyses the valuation effects of these TMT transactions using event study methodology. Analysing 114 acquirers and up to 221 of their rival companies over a time span from 1980 to 2006, the authors found that acquirers significantly destroy value for their shareholders. This value destruction might be justified through necessary strategic positioning, however, since rival companies are also documented to suffer negative abnormal returns around announcement of such transactions. It was also found that negative abnormal returns are especially pronounced for direct competitors. Against expectations, this effect was found to be stronger for transactions after the Telecommunications Act 1996. [ABSTRACT FROM AUTHOR]