10 months from now, the biggest technology merger in history is going to happen. Personal computer giants Dell and EMC are ready to close its mega$63.4 billion deal which is bigger than the expense of government in 48 countries in Central Intelligence Agency.
Picture Courtesy: www.insidermonkey.com
The final approval from the China’s Ministry of Commerce will clear the way for this partnership which will have $54.9 billion (2016) of revenue respectively.
The new entity will be named as Dell Technologies and the founder, chairman and CEO Michael Dell will be its CEO and chairman.
How far is this deal from that of the rest of the world’s? Let’s find out:-
1. Hewlett Packard acquires Autonomy, $10.33 billion
Picture Courtesy: www.hp.com
Hp is known for acquisitions, but this one didn’t go well with critics, it was described as absurdly high and chaotic. Autonomy was HP’s highest buy of 17.6 billion for Compaq in 2002 which is a high price to pay. One year later both the organizations threw accusation at each other on who allegedly at fault for company’s trouble with executives from both he firms getting the boot in the process. This deal is considered one of the worst of HP’s.
2. Oracle buying PeopleSoft, $10.3 billion
Picture Courtesy: www.businessinsider.com
It took almost a year and half for Oracle to finally land on PeopleSoft as it made several bids as high as 13 billion but it ran into resistance from PeopleSoft’s board as well as a lawsuit threat from US department of Justice. PeopleSoft finally gave in Dec 2004 but with a heavier price. Over half of its 11,000 employees were given the pink slip by Oracle.
3. Google acquires Motorola Mobility, $12.5 billion
Picture Courtesy: gadgets.ndtv.com
Google’s largest ever acquisition tops the list of 170 take over but after 2 years, Google sold Motorola to Lenovo for $2.91 billion. Google had simple and strategic reason for this move.
4. Symantec buys VERITAS, $13.5 billion
Picture Courtesy: fortune.com
Biggest deal of Symantec which made VERITAS the 5th biggest software firm globally, but it was criticized because both served different markets. Symantec announced that they would split into 2 entities. Later it ended when it was further sold to Carlyle Group in august. What was the gain for Symantec? It gained access to VERITAS’ Fortune 500 clients.
5. HP acquires EDS, $13.9 billion
Picture Courtesy: www.nytimes.com
This acquisition gave HP combined revenue $18.4 billion and a Fortune 500 ranking of 9 in 2008 in order to compete with IBM. This also swung the axe on EDS staff. In 2009, the EDS unit became known as HP enterprise as its arm. The revenue soared $7.4 billion in 2015.
6. Facebook snags Whatsapp, $19 billion
Picture Courtesy: www.fatbit.com
It is one of the recent biggest take over. Facebook bought Instagram for a billion in 2012. Apparent from the reach of Whatsapp, from a wide and popular messaging app (despite of facebook already having messenger) the deal also brought the Whatsapp users of over 450 million users to Facebook’s then 1.278 billion users. Whatsapp users crossed the one billion mark in February this year.
7. Microsoft nets LinkedIn, $26 billion
Picture Courtesy: www.hackread.com
By the end of 2016, this biggest acquisition is still pending its approval. Analysts see that Microsoft will be able to integrate its office products into LinkedIn’s vast professional network. However it will remain independent with Jeff will continue being CEO.
8. Softbank buys ARM, $32.3 billion
Picture Courtesy: www.rappler.com
2016 is a year of big acquisitions and Japan’s Softbank has joined it, the ARM deal pips its previous $22 billion takeover of Sprint in 2013. While it actually made sense for Softbank to push into Internet of Things market, another smart reason for this deal is the Brexit vote resulted in the value of pound plunging, making way for Softbank to get ARM at a relatively low cost.
9. HP buys Compaq, $33.6 billion
Picture Courtesy: www.businessinsider.com.au
As both companies were struggling at that time, this massive deal was greatly questioned and is one of the most arguable and worst in history. Analysts said that HP is overvaluing Compaq.
10. Dell acquires EMC2, $63.4 billion
Picture Courtesy: www.financialexpress.com
This is almost twice in amount of the previous one in value. While indeed a unanimous decision, time will tell if this is a wise move or not. It is a gargantuan deal.