To cut down competition and conquer a large demographic, multi-billion dollar companies conduct mergers and acquisitions worth billions to remain ahead in the market. Mergers and Acquisitions have been a natural process of a business that needs restructuring to stay afloat in the market or cut down the competition. The first wave of mergers dates back to the Great Depression when J. P Morgan Chase merged US Steel with more than 700 small steel firms and Carnegie Steel for a 70% controlling stake.
To analyze investor sentiment and the emerging M&A opportunities and challenges for APAC dealmakers in 2022. Key findings include:
- A third of APAC dealmakers believe M&A activity will increase significantly over the next 12 months
- 30% of APAC investors feel that rising regulatory scrutiny is the greatest challenge to maintaining healthy M&A markets
- Two-thirds of APAC M&A professionals say COVID-19 has increased their dealmaking appetite
The top 5 biggest M&A deals of 2022 are:
- Take-Two Interactive pays for Farmville developer Zynga
They have announced the purchase of mobile gaming giant Zynga for $12.7 billion in cash and stock, the latest blockbuster acquisition in a succession of large mergers in the video game industry. Take-Two is one of the largest and most diverse mobile game publishers in the industry.
- TD Bank to acquire First Horizon
The TD Bank and First Horizon have announced that they have signed a definitive agreement for TD to acquire First Horizon. The acquisition will be completed in an all-cash deal valued at US$13.4 billion, or US$25.00 per First Horizon common share.
Bryan Jordan, President & CEO, First Horizon comments on the transaction “This partnership with TD Bank creates extraordinary value for our shareholders and provides our clients with a broader product set and advanced technology. We have long respected TD Bank as a leader in U.S. banking and are confident that their additional investments in our local markets will accelerate growth and enhance our long history of community support.”
- Vista Equity Partners, Evergreen Coast Capital Acquire Citrix
Vista Equity Partners and Evergreen Coast Capital Corporation have entered into a definitive agreement to acquire digital workplace solutions provider Citrix in an all-cash transaction valued at $16.5 billion. To assist in navigating the hybrid workplace, TIBCO provides real-time intelligent data and analytics capabilities.
- Elon Musk to acquire tech giant Twitter
After initially rejecting Elon Musk’s overtures, Twitter’s board of directors said on Monday 25th of April that it will accept Musk’s $44 billion offer for the firm, putting an end to a weeks-long dispute over whether the company would accept his unsolicited proposal. However, Elon Musk recently tweeted saying that he is putting his bid to acquire Twitter on hold, weeks after agreeing to take the company private in a $44 billion deal.
The Tesla owner spoke on the transaction saying “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in a statement. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
- Microsoft acquired Activision Blizzard
On January 18th, 2022, Microsoft acquired Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. This deal was a significant step toward Microsoft’s entry into the gaming market. Microsoft became the world’s third-largest gaming company by revenue, behind Tencent and Sony. The acquisition includes iconic franchises from Activision Blizzard and King Studios such as “Warcraft,” “Diablo,” “Overwatch” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming.
These mergers and acquisitions are expensive, from tech giants that merge partnering applications to streaming platforms that are trying to give head-to-head competition for market domination.
To conclude, global M&A activity in 2021 saw record highs and many were skeptical as to whether this would continue into the following year. However, the boom in the M&A sector most certainly has continued.
