There are numerous reasons why these kinds of deals happens
- To increase growth in future
- To acquire patents/technologies
- To shut down a rising competitor in the market
Big fish must eat small fishes to survive. These deals generally involve heavy and astonishing price tags. Recently, Facebook bought Whatsapp in exchange of US $19 billion. Yep, we all have heard about this deal but do you have knowledge about other big buys. Today we are presenting some notable acquisition in our list of 16 Most Expensive Deals in Tech Industry.
16. Facebook buys Instagram – $1 Billion
Facebook offered $1 billion for photo and video sharing app for Smartphone (Instagram) in April 2012. As of September 2013 Instagram has set up more than 150 million users. It was also listed among top 50 Android apps in 2013. After this deal Instagram grew up by 23 %, whereas Facebook only by 3%.
15. Yahoo buys Tumblr – $1.1 Billion
Tumblr is microblogging and social networking site owned by yahoo since May 2013. This is the biggest deal ever done by Yahoo in history under the leadership of Marissa Mayer (CEO Yahoo). Since then Tumblr has shown no sign of dropping down. The service is most popular with teen and college aged students containing 174 million blogs and 78 billion posts.
14. Ebay buys Paypal – $1.5 Billion
Ebay picks up Paypal in exchange of $1.5 Billion in June 2002. It is an international e-commerce business which allows money transfer and payment through the internet. Paypal operates in more than 200 markets and manages more than 250 million accounts. As of 2013, Paypal’s total payment volume processed was around US $163 Billion and also accounted for 39% of eBay’s revenue.
13. Google buys YouTube – $1.65 Billion
No need to give any introduction about Youtube.com. Internet search giant bought video sharing site in October 2006 from its founders, Steve Chen and Chad Hurley for $1.65 billion. Since then YouTube has gone through a lot of changes in look, feel and performance. The site has 1 billion unique visitors per month, 6 billion hours of video, 100 hours of video uploaded every minute and available in 61 languages.
12. Dell Buys Quest Software – $2.36 Billion
Quest is software manufacturer and supports almost all kinds of infrastructural software. The company is best known for manufacturing TOAD, a product used by database developers. It offers many other products that help in creating, managing, monitoring software and application. On 2nd July, 2012 Dell announced that it was buying Quest for US $2.36 Billion.
11. Microsoft Buys Minecraft – 2.5 Billion
Microsoft has bought Mojang, the Swedish firm best known for developing a popular independent game Minecraft. The deal was announced on 15th September 2014. Minecraft is one the top selling apps in both Apple store and Google play. It has been also released for Xbox one and Playstation 4. It is expected that this deal will attract more users to Microsoft windows phone.
10. Google Buys Nest Labs- $3.2 Billion
Nest labs is a home automation company that creates wifi enabled, self-learning, smoke detector and advanced thermostats. The co-founder is none other than creator of iPod, Tony Fadell. The deal makes it obvious that Google is not only going to improve their search engine algorithm in future, but also they are ready to make your home system automated.
9. Verizon Buys Yahoo – $4.8 Billion
Verizon is buying the pitiful remains of what used to be the king of the Internet. Yahoo is probably the most mismanaged giant tech company ever. They had the opportunity to expand beyond the core of search business, and they screwed it all up.
The deal is expected to be finalized in the first quarter of 2017. The shareholders will keep the Yahoo’s lucrative investments in Chinese eCommerce giant Alibaba and Yahoo Japan. They will split into a separate, yet to be named, publicly traded company. The deal also excludes Yahoo’s cash and some patents.
8. Microsoft Buys Nokia – $7.2 Billion
Once upon a time when Nokia was the Mobile selling leader but in recent years Android platform has destroyed their all customer trust and selling values. Microsoft has decided to give a tough competition in the mobile market by buying Nokia mobile unit for more than US $7 billion that includes mapping services, patent portfolio and 32,000 employees.
7. Oracle Buys Sun Microsystems – $7.4 Billion
Sun Microsystem sold Information technology service, Computer component and software and created a Java programming platform and Network File System (NFS). Oracle buys struggling Sun Microsystems and its Java programming language for $7.4 billion in April 2009. This deal kept Java away from IBM’s hands.
6. Microsoft Buys Skype – $8.5 Billion
Skype is instant messaging client and a free voice IP service that was owned by eBay in 2005 for $3.1 billion. They sold it off to private investor at 40% loss. Microsoft bought Skype in May 2011 for US $8.5 billion. Since then Skype is preinstalled on every windows platform. Till now Microsoft didn’t get any major profit, though this deal. But this deal is much better than Microsoft’s acquisition of online advertising company, aQuantive in a 2007 for $6.3 billion. You can say that online advertising is still out of Microsoft’s clutches.
5. Hewlett-Packard buys Autonomy – $10.24 Billion
HP bought British Enterprise Software Company, Autonomy in August 2011. Later, in the end of 2012 they admitted that they had overpaid to buy Autonomy. After 1 year HP claimed that there was serious accounting scandal found in the company. The incharge Leo Apotheker and CEO Mike Lynch were fired when autonomy failed to reach target revenue.
4. Google buys Motorola Mobility – $12.5 Billion
Google bought the handset business Motorola for twelve and a half billion in August 2011 in order to challenge Apple in the Smartphone market and they failed to do that. In less than 3 years, Google sold Motorola to Lenovo (including 2000 patents) for US $2.91 billion.
3. Facebook Buys WhatsApp – $19 Billion
With the ridiculous price Facebook bought more than an app. Facebook is getting access to more than 450 million users. It was Whatsapp who killed all mobile messaging services. The idea is to develop simple, fast and non-bothering service for communication. Brian Acton and Jan Koum came up with an app where user can share videos and images along with the texts. After acquisition, Chat app Telegram logs 5 million downloads in one day and Whatspp lost around 1 million of its current user, but in the meantime gained millions of new users also.
2. Hewlett-Packard buys Compaq – $25 Billion
Compaq founded in 1982 that sold computer product and related service. It also produced few first IBM PC compatible computers and during the 90’s, they became the largest supplier of PC system. HP welcomed Compaq into the family for US $25 billion on 3rd September 2001 in a bid to compete with IBM, the most expensive deal in IT sector.
Also read: Famous Companies Started in Garage
1. Microsoft Buys LinkedIn – $26.2 billion
LinkedIn, a business oriented social network service has more than 400 million users. On June 13, 2016, Microsoft announced it will acquire LinkedIn for $26.2 billion. Jeff Weiner will remain the CEO of company and he will report to Microsoft CEO Satya Nadella.
The software giant company Microsoft has made a significant push in the last couple of years to make its products more connects and wants to use data to make them more effective and intelligent. LinkedIn’s wide network offers data that could help. LinkedIn shares surged 47 percent after the announcement, while Microsoft’s stock gone down to 3.2 percent.