Every tech company eyes to acquire or merge with the upcoming threat to their business or to safeguard from opponents. Today we have an infographic which clearly shows the comparison between top tech giants Google, Apple, Microsoft, Facebook and others on their strategy on acquisitions.
In 2005, Rupert Murdoch foreseen the future was all about social media’s and bought MySpace for wooping $580. But the social media segment as soon captured by Facebook which started at just a year before MySpace by college dropout Mark Zuckerberg. Years later, Murdoch would sell MySpace for $35 million – merely 6% of its acquisition price.
Well, that was really a worst buy you would say. But there are many success stories like Google acquiring Android. Inc. In the same year, when Rupert bought MySpace, Google saw something special in Android mobile OS and bought it for $50 million in 2005. Being an open source OS, today, it is making billions of dollars from the app business and now the leading OS worldwide powering 80% of all Smartphones.
Similarly, a struggling Apple purchased NeXT on December 20, 1996 for $429 million. This in turn brought back the master, Steve Jobs to Apple and NeXT operating system became the foundation of OS X. This is by far a bigger purchase Apple has ever made in its history.
There are many good and bad buys in the history of acquisitions. It’s one such unpredictable nature of the merger or acquisition in the tech industry that the hot products today can easily turn sour the next morning. But shockingly, In Q1 2014, the total global volume of tech companies reached an eye-popping US$756 Billion.
Today we have got an inforgraphic from Finances Online which shows the comparison chart of the major acquisitions of the most influential technology companies till now.
- Facebook’s acquisition of WhatsApp for $19 is the fourth biggest acquisition of 2014 and the purchase price is thirteen times of its entire 2013 net income
- Google bought Motorola for $12.5 billion in 2011 mainly eyeing to build patents portfolio and sold it to Lenovo for just $2.9 billion in 2014
- In 2014, Google acquired nest for $3.2 billion just to collect the data on activities you do at home and spent just half of it on YouTube in 2006 which is now worth $15 billion
- Microsoft bought Hotmail just to safeguard itself from AOL and Yahoo mail, but in a few years Gmail became the most used mail service and Hotmail was killed to make room for Outlook.com in 2013
- Facebook acquired online photo and video sharing social networking app Instagram for $1 billion in 2013 as it was growing faster than YouTube and Twitter. It could have built the similar app, but, Mark was generous about spending money on Instagram