Meet The Top 5 Remarkable Acquisitions Of 2013 – 2014
Mergers and acquisitions take place faster than most people can follow – even investors and other interested parties with skin in the game.
But the trend is alive and well; especially amid today’s tech-heavy industry of conglomerates capable of working efficiently in a variety of related businesses.
While acquisitions never went away, they are ramping up for forward thinking businesses, like those developing apps and enhancing computing power. Just trace some of the big names, like Apple, to see the acquisition trends first hand.
Some make headlines, other acquisitions are relegated to backroom deals, which often involve staggering sums of capital.
Some remarkable acquisitions undertaken in the past few months include the following business shifts worthy of note.
Baidu to Bolster its Mobile Business
Baidu, China’s largest search engine has gained strides on competitors recently, by making several aggressive acquisitions to support its business portfolio.
The company recently acquired 91 Wireless Apps Store to bolster its mobile business. The reported price of $1.9 billion ranks the move among the most aggressive of its kind.
After acquiring a majority share of a group buying site call Nuomi, in August, Baidu recently announced it would complete a deal for the remain interest in the company during the fourth quarter of 2014.
Nuomi provides similar services as giant Groupon, which has become a household word in US markets.
Apple Makes Small Acquisitions Count
Tech-watchers look to Apple’s recent acquisitions as clear indications that the company has television projects in mind for the future.
The company has acquired at least 20 small operations in the past year and a half, targeting technology that appears destined for small-screen endeavors – not iPhone small, but television small.
In November, for example, Apple bought an Isreali 3D motion sensor company believed destined to aid for Apple’s expanding interest in recognition technology and motion sensors.
PrimeSense is associated with Microsoft Kinect technology, and was acquired for around $300 million.
Apple’s largest acquisition however could be Tesla Motors. Rumors are getting stronger by the day.
Facebook Acquires WhatsApp for $19 Billion
Facebook recently paid $19 billion for the messaging service WhatsApp. 450-million users currently take advantage of WhatsApp, so it appears Facebook’s Zuckerberg places a high value on the potential of these users to make him money in the future.
The acquisition also brings a more personal touch to the Facebook brand, which relies on a more open paradigm.
WhatsApp leans on a more user-to-user experience, where people refine who gets their messages.
In 2013 Facebook was willing to pay $3 billion for startup Snapchat. But Snapchat said no.
American Airlines – US Airways
In bankruptcy since 2011, American Airlines future held a number of distinct possibilities. Even those watching the situation closely might have been surprised to see the deal that helped pull them from bankruptcy.
Creating the largest air operator in the world involved American acquiring US Airways, in a merger deal that makes both entities more competitive.
The $11 Billion plan provides for American Airlines creditors’ and creates firmer financial footing for them to make good on debts.
eCEO Michael Dell Buys Dell
Tech fortunes change rapidly – as evidenced by Michael Dell and equity firm Silverlake buying Dell, Inc. in 2013.
Once topping out at $170 per share, the buyers paid around $14 in today’s terms, which reflected a significant discount over the company’s one-time trading value.
The privatization of Dell is seen to underscore the rise in mobile technology and diminished value of Dell as a publicly traded company.
Once the world’s largest PC manufacturer, Dell going private allows the company’s founder, Michael Dell to refocus the brand on emerging tablet and mobile trends.
The deal was worth around $25 billion.
Acquisitions play out in a variety of ways, across countless industries.
While technology companies seem to be some of the most desirable acquisition targets; mergers and acquisitions are not limited to cutting edge industries.
When better goods and services result from mergers, the public benefits from companies joining forces; but when their only impacts occur on balance sheets, mergers and acquisitions don’t contribute much to the fabric of society.
What About You?
What were other remarkable acquisitions? We all get smarter from peer discussions, so share your opinion.
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About the Author
This is a guest post by Sarah Brooks from Freepeoplesearch.org, a people finder site. She is a Houston based freelance writer and blogger. Questions and comments can be sent to brooks.sarah23 @ gmail.com.