In the modern tech industry, mergers and acquisitions – where ownership of organizations and all their assets transfer to the company that buys them – are common practice.
Now, mergers and acquisitions are one of the most common ways in which companies grow and it is a strategic management practice which has given names such as Amazon, eBay and Expedia a competitive advantage in their respective industries.
It is now the norm that larger and more successful companies within a particular industry – such as travel – purchase smaller up-and-coming-ones within it. This enables them to stand a better chance within the market and many well-known companies are incorporating this strategy for their growth.
For example, home computer software magnate Microsoft has purchased MSN, LinkedIn and Bing. eBay, the online marketplace and auction platform, has previously purchased Skype (now owned by Microsoft), Gumtree and PayPal.
You might not have known this, but it’s true: the commercial world is not actually so large and is ran by a handful of parent corporations.
A recent high-profile acquisition was completed in December 2017 by Apple, who purchased Shazam for $400 million.
Amazon is also a big name when it comes to mergers and acquisitions. The globally known e-commerce giant is, without doubt, the industry leader and has made a large number of acquisitions over time. Its largest, by far, was the June 2017 purchase of Whole Food Markets for a massive sum of $13.7 billion.
That is not all, though. Also in Amazon’s portfolio of companies are IMDb, Zappos, Telebool, Junglee, CreateSpace and a whole number of other companies.
Given the prominent role Amazon now plays and the expectation of the company to soon be worth $1 trillion, it is unlikely that it is going to slow down anytime soon and will more than likely continue to make more high-profile acquisitions to bolster its growth strategy.
It is not just tech and e-commerce companies which are merger crazy, though. Travel company Expedia, famous for its flight sales, offers and discounts, has dominated the online travel industry over the years. Its mergers and acquisitions have included Hotels.com, Trivago and HomeAway.
Check out the infographic below to see just how common mergers and acquisitions are, and see who are the key players in today’s digitally connected world.
What’s your say about the companies coming together (Merging) to grow up easily and later get sold? Just like Facebook buying both WhatsApp and Instagram, Apple buying Shazam, Microsoft buying LinkedIn, MSN and Bing?
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