There are countless reasons that encourage enterprises to take over other enterprise. Some of the major reasons include integration, innovation, diluting competition, portfolio expansion client or talent acquisition. To an extent, mergers and acquisition helped companies such as Amazon, Google, Facebook, Microsoft, and Apple to reach the position where they are today. In all fairness, these companies are the champions of M&A. They have consolidate their market position and continued to expand successfully. By observing the acquisition strategies followed by some of the leading technology companies, it becomes little easier to understand the future possibilities of technological innovation and development of the society at large.
Google has always been at the forefront of making strategic accusations. Since 2007, the tech giant has reportedly acquired a staggering 172 companies. Google continues to be one of the most active acquirer amongst the top technology firms of the world. However, even Google’s M&A activity dropped in the 2008-09 economic recession that saw their revenues fall as well. The time has certainly changed now with the global economy steadily recovering. Meanwhile, Amazon being a heavy-weight in the technology space has acquired a relatively lower number of business as compared to other leading players. According an online source, 2014 is marked as the year that saw an overwhelming number acquisition and merger deals in the technology sector. That year, Apple acquired Beats, Facebook took over WhatsApp and Twitch was sold to Amazon. Today, anything that has an online presence is part of the technology industry including media and the technology giants are not holding back from betting high on them. In 2016, Apple, Google and Microsoft revealed their interest in media business by acquiring media platforms such as Carpool Karaoke, Synergyse and Anvato respectively.
By giving a hard look at Apple’s list of acquisitions done over the past couple of years, it could be understood that the company’s most of the deals had very little to do with the smartphone space. It also says a lot about the Apple’s confidence on its indigenous capacity to innovate when it comes to smartphones. On the other hand, Microsoft and Google have made a number of acquisitions particularly in this segment, each having bought the like of Nokia and Motorola respectively.
Mergers and acquisition can sometimes lead to concentration of technology IP within a small group that could greatly sabotage the competition present in the market. A market which is competitive is always beneficial for the consumers and hence allows more novelty and opportunities.