Social networks nowadays are so much popular in the world that you can barely find a person that don’t have a profile page on some social network, but have you ever thought about what are the biggest Tech Acquisitions that may never be topped? Mergers and acquisitions have long been a valuable tool for companies to expand their reach and add capabilities. Companies acquire or merge to diversify their business models, increase their capacities, or gain a competitive advantage.
One of the most famous corporations Facebook In April 2012, announced that it was spending a whopping $1 billion to acquire startup social network Instagram, run by two 20-somethings, which had a mere dozen employees and practically no revenue. Did you ever hear about Alphabet Inc? Alphabet Inc has bought roughly 170 companies since its launch as Google in 1998. But its timely acquisition of YouTube in 2006 dwarfs all of its deals due to the long-term and explosive growth opportunities it tapped into with this deal. Alphabet Inc acquired YouTube 10 years ago for a hefty $1.6 billion when YouTube was just over a year old. An acquisition is a reasonable thing in a business world. Especially nowadays when we are talking about tech acquisition when the popularity of social media is at its peak nowadays. An acquisition occurs when one entity takes ownership of another entity’s stock, equity interests or assets. From a commercial and economic point of view, both types of transactions result in the consolidation of assets and liabilities under one entity, and the distinction between a “merger” and an “acquisition” is less clear. Achieving acquisition success has proven to be tough, while various studies have shown that 50% of acquisitions were unsuccessful. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a bigger and longer-established company and retain the name of the latter for the post-acquisition combined entity. There are also a variety of structures used in securing control over the assets of a company, which have different tax and regulatory implications.
If you want to see what are the biggest Tech Acquisitions that may never be topped, check Insider Monkey’s list of 5 Biggest Tech Acquisitions That May Never Be Topped and find out more about this topic.