It is not uncommon for companies to merge to gain an advantage over other companies in the same industries. Often, it is big companies that acquire smaller ones who show potential and innovation in related fields! However, some of these mergers have had great impacts on the way the world works these days. Keep on reading to check out 8 mergers that shaped industries and changed the game!
Why can mergers have such a big impact?
When two companies decide to merge, or when a bigger company invests money in buying another company they suddenly gain access to each other’s resources, information and clientele giving broader insight in certain industries and how they operate.
Often, company mergers happen between two or more competitors to form one unified team in the industry and gain an advantage like that. This way, they can become a superpower against the rest of the competition and ultimately settle into a better position than if both companies stayed separate.
However, these companies don’t have to be in the same industries. When two companies from different industries merge, you create a whole new type of player. By innovating or expanding a company’s reach, other companies within the same industries will be forced to innovate at a much faster pace than they’re capable of!
8 Mergers that shaped industries like never before!
One of the biggest mergers in the entertainment industry took place in 2006 when Disney acquired Pixar. By acquiring Pixar, Disney gained access to new technologies and could restructure their creative approach to new movies. These new technologies and the creativity from Pixar, combined with Disney’s working formulas, have created multiple blockbuster movies as a result!
In the Energy industry, Exxon and Mobil decided to merge into the Exxon Mobil Corporation. The merger was a strategic play to reduce the prices of their oil to compete with a larger market in other states and even outside of the USA!
A merger of two different industries that had an enormous impact was Amazon’s acquisition of Whole Foods—it disrupted the grocery industry by blending e-commerce convenience with brick-and-mortar tradition.
Pfizer’s Warner-Lambert acquisition drove medical breakthroughs through Lipitor’s massive success. Pfizer acquired the company to gain the full rights to Warner-Lamberts Lipitor, which is an FDA-approved medication that lowers the risk of Cardiovascular problems and can reduce the patient’s need for surgeries.
Biggest tech acquisitions
Google saw the potential of Android back in 2005 when the company was just 22 months old. They acquired it for nearly 50 million dollars, and it was one of the best tech investments before 2008. In 2013, around 79% of new smartphones worldwide were running Android software!
Dell is one of the biggest producers of servers, computers, and storage solutions for businesses all over the world. However their merger with EMC made them the perfect all-in-one solution for businesses!
Verizon’s $130 billion deal with Vodafone UK to buy out their long-term partner is an investment to pave the way for 5G and other wireless solutions in the states. Vodafone will have a lot of cash to invest in other business ventures. However, there has not been a clear path to what they will do!
The merger between Microsoft and Activision Blizzard is one of the most recent big mergers in the digital world. This merger gave Microsoft the edge over Sony as they now controlled Call Of Duty, one of the biggest gaming franchises in the world! Recently, Microsoft, who also owns Xbox, was able to release the newest Call Of Duty title to their monthly subscription pass, which made their sales of the pass soar! These mergers prove that bold collaborations are key to staying ahead in an ever-changing world.
