The 5 Biggest Company Acquisitions of 2018
- by siteadmin
Well, 2018 has been a year for the record books. From the federal government shutdown to America’s impact on global politics and culture, it’s hard to believe that this year is already coming to an end. To no one’s surprise, there were some crazy business acquisitions in 2018. Apple dominated Silicon Valley headlines with its acquisition of several companies, including Beats Electronics and Shazam. This year also included five other notable mergers across different industries. That said, here are the 5 biggest company acquisitions of 2018:
1) Disney- Fox Deal
The Walt Disney Company has had its eyes set on 21st Century Fox since December 2017 when they made their initial offer to purchase 21st Century Fox assets. Originally valued at $52 billion, the purchase ticked up to $71.3 billion when both companies’ shareholders approved its finalization in September 2018. Disney is expected to have access to some of Fox’s biggest assets, including the X-Men and Fantastic Four movie rights, Avatar, The Simpsons, FX Networks, National Geographic, etc. Disney will also take on some of 21st Century Fox’s debt after the deal finalizes in 2019.
2) Broadcom- CA Technologies Deal
Technologies have been a household staple for over 30 years as one of the largest software developers in America. In September 2018, Broadcom made its bid official and was able to successfully acquire CA Technologies for $18.9 billion (including debt). As part of the agreement, CA Technologies will continue to operate as its own business unit under Broadcom. One of the biggest questions on everyone’s mind is what this acquisition means for Broadcom and CA Technologies customers. It was reported that both companies will focus on cutting costs and eliminating redundancies before any major changes come.
3) Facebook- WhatsApp Deal
In February 2014, Facebook successfully acquired the messaging service WhatsApp for $19 billion. At the time of purchase, WhatsApp had roughly 450 million monthly active users (MAU). By October 2018, MAUs reached 1.5 billion people worldwide. While CEO Mark Zuckerberg originally stated that Facebook would leave WhatsApp as a separate entity, it wasn’t long before he changed his mind and announced plans to integrate the messaging service into Facebook’s system. Zuckerberg stated that the integration would allow WhatsApp users to use its features without a data plan or internet connection by 2020. With 1.5 billion people choosing to utilize WhatsApp each month, the potential for growth is high and it will be interesting to see how this merger evolves in 2019 and beyond.
4) CVS- Aetna Deal
In December 2017, Aetna made headlines when they announced that they were partnering with the retail giant CVS on health care initiatives. While details of their partnership have been kept under wraps since then, in November 2018 CVS successfully acquired the insurance company Aetna for $69 billion. The move was highly controversial given that both companies had just recently partnered with each other. Many critics believe that Aetna made the deal in an attempt to save itself after they were denied their proposed merger with another insurance company, Humana. However, both companies remain adamant that their partnership will continue for years to come and it’s possible that 2019 could include even more developments of this nature.
5) Broadcom- Qualcomm Deal
The chip manufacturing giant has had its eyes set on American telecommunications companies since November 2017 when they made their initial offer to purchase Qualcomm for $70 per share (eventually rising to $82 per share). The purchase was finalized in May 2018 when the two companies agreed to a price of $79 billion (including debt). While Broadcom is known for developing semiconductors, management at Qualcomm remains optimistic that Broadcom will allow them to continue operating as usual. However, the deal was yet another controversial purchase in 2018 considering that Qualcomm is currently involved in a lawsuit with America’s largest technology company, Apple.
Well, 2018 has been a year for the record books. From the federal government shutdown to America’s impact on global politics and culture, it’s hard to believe that this year is already coming to an end. To no one’s surprise, there were some crazy business acquisitions in 2018. Apple dominated Silicon Valley headlines with its…