You might have heard about the increasing number of mergers and acquisitions taking place in recent years. The combination of these mergers and acquisitions is surprising because you could notice a well-established start-up collaborating with a high-end company who has been in the industry since years.
The increasing numbers of such instances no longer surprises you but you are just curious to know the whereabouts of such combinations.You sometimes wonder how the finances are being arranged especially as we are talking about such huge figures, when sometimes small business owners struggle to get even a basic loan ( find out more about how you can secure a small business loan here).
But, we have discussed certain facts about some of the more astonishing mergers that have taken place recently-
Disney- 21st Century Fox
The entertainment world experienced a minor shock when Disney announced that they would soon be purchasing the entertainment assets of Rupert Murdoch’s 21st Century Fox. The deal was finally closed at $52.4bn and it is likely to come into action from December.
With this deal, two entertainment kings come under Disney’s secured roof. Every movie-buff would probably be delighted with this acquisition because they might get to witness fascinating franchise intersection. Deadpool, The fantastic Four and X-Men get to team up with their Marvel counterparts under Disney’s Marvel Cinematic Universe.
This acquisition doubles Disney’s stake in the streaming service Hulu. This also strengthens Disney’s position in the streaming market since it plans to launch direct-to-customer streaming service in the year 2019.
Amazon – Whole Foods Market
This was the most noticeable deal of 2017 (approx $13.7 bn) wherein the e-commerce shark (Amazon) acquired with a brick and mortar food retail company whole Foods Market. The was announced to the public in August, 2018.
If you look into their individual working patterns then you would definitely say that they seem like chalk and cheese. Whole Food Market has built a brand of being a classic local food shop where time and efforts plays a vital role. On the other hand, Amazon is well known for its logistical mastery and quick turnover of inventory.
Food retailers began to lower prices in the immediate aftermath of the deal being announced. This acquisition is likely to generate a new customer base which has predominantly avoided Whole Foods Due to its relatively high prices and elite reputation in the market.
Almost everyone who used the internet during the late 1990’s will be familiar with the digital dominance of Yahoo. In fact, in 1998 it was the most well-known start point on the web until the dotcom bubble and Google came into picture. Google violently pulled off Yahoo from its perch.
Last year in June, Verizon the American telecommunication multinational company came to Yahoo’s rescue and purchased it a whooping price of $4.48bn. Yahoo may no longer enjoy the old perks it once enjoyed but their recent history cannot go unnoticed.
Yahoo which was the 6th most visited website now functions under Oath, Verizon’s digital content subsidiary which is also managed by Huffington Post and AOL.
Many people are still unaware about the fact that Intel was actually overtaken by Samsung as the world’s largest chipmaker recently. In response Intel acquired Mobileye which is an Israeli visual sensor firm. It was in the month of August that this deal came into sight at a staggering price of $15.3bn.
With this acquisition, Intel intends to mark itself as a leader in the field and this is certainly one of the hottest deals in the field of technology right now. Not many know that the companies also share partnership with BMW- the German Automaker on a fleet of 40 self-driving vehicles that is likely to hit the road in the third quarter of 2018.
A number of players utilise Mobileye’s technology. Tesla which has the most popular and recognised automated driving programme in the car industry is among one of them.
CVS is the biggest pharmacy chain in the US and the US healthcare market is surely going to rock in the coming years. This is because in December of 2017, CVS announced purchase of the fifth largest health insurer in the US, Aetna for $69bn.
The American Antitrust had lobbied the US Government to block the merger since it would leave no room for business for the rest of the players. The deal was mainly initiated to beat the threat of major conglomerates like Amazon which had just entered the market.
Health insurer Cigna also bought prescription benefit management company Express Scripts in a deal worth a whooping $67bn.