Technology
The Big Five: Largest Acquisitions by Tech Company
The Big Five: Largest Acquisitions by Tech Company
The Big Five tech giants, or “FAAMG”—Facebook, Amazon, Apple, Microsoft, and Google (Alphabet)—have a combined market capitalization of over $4 trillion.
These powerful tech behemoths often devour the talent, technology, or entire businesses of aspiring competitors. Given their financial weight, mergers and acquisitions have become a key tactic in maintaining their strong grip on tech supremacy.
Today’s Chart of the Week explores the world’s most powerful tech companies and their biggest acquisitions to date.
Which Acquisitions Were a Success?
While these tech giants may have had big aspirations for these exceedingly large deals, they have mixed success rates.
Microsoft
Microsoft made its big move 2016 to buy LinkedIn for $26.2 billion, and it’s the most sizable acquisition by any of the Big Five tech companies.
Microsoft’s 5 Biggest Acquisitions:
Acquisition (Year) | Amount | Category |
---|---|---|
LinkedIn (2016) | $26.2 billion | Social Media |
Skype (2011) | $8.5 billion | Telecommunications |
GitHub (2018) | $7.5 billion | Software |
Nokia (2014) | $7.2 billion | Telecommunications |
aQuantive (2007) | $6.3 billion | Marketing |
The LinkedIn deal was made due to the synergy between the two companies’ offerings, and Microsoft’s desire to gain access to LinkedIn’s 575 million members.
However, not all of Microsoft’s acquisitions have been as successful, such as its 2014 purchase of Nokia’s Devices & Services business for $7.2 billion. This seemed like a smart move at the time, considering the Finnish company held 41% of the global handset market.
Yet, Microsoft sold the asset for a mere $350 million just two years later. Microsoft shifted its strategy and exited the feature phone market, choosing to focus on a narrow, niche market for their hardware.
Amazon
Amazon has closed more than $20 billion in acquisitions and investments since 2017. This includes the purchase of Whole Foods, which Amazon bought for $13.7 billion, and is the company’s largest acquisition to date.
Amazon’s 5 Biggest Acquisitions:
Acquisition (Year) | Amount | Category |
---|---|---|
Whole Foods (2017) | $13.7 billion | Retail |
Zappos (2009) | $1.2 billion | Retail |
Ring (2018) | $1.2 billion | Technology |
PillPack (2018) | $1 billion | Pharmaceuticals |
Twitch (2014) | $970 million | Social Media |
From purchases to bolster the AI of smart assistant Alexa, to Wi-Fi enabled doorbell Ring, recent additions clearly show the company intends to cement its presence in people’s homes.
After acquiring Whole Foods, Amazon began offering store discounts to Prime customers, in an attempt to bundle its home offerings and provide a more holistic customer experience.
Alphabet
Alphabet has made several daring moves into the hardware and data science sectors. The company’s biggest acquisition was Motorola, which it bought in 2012 for $12.5 billion.
Alphabet’s 5 Biggest Acquisitions:
Acquisition (Year) | Amount | Category |
---|---|---|
Motorola (2012) | $12.5 billion | Telecommunications |
Nest (2014) | $3.2 billion | Technology |
DoubleClick (2007) | $3.1 billion | Marketing |
Looker (2019) | $2.6 billion | Software |
YouTube (2006) | $1.7 billion | Social Media |
However, the purchase of Motorola was a bet that didn’t pay off. Alphabet sold off much of Motorola’s assets for less than $3 billion in 2014, a little less than two years after it had originally acquired it.
Alphabet continues to consolidate its acquisitions in order to simplify its organizational structure. DoubleClick, acquired in 2007, merged with Google Analytics 360 Suite under the Google Marketing Platform—making it easier for marketers to access their metrics using one platform.
Apple
Out of the Big Five companies, Apple has the fewest acquisitions over $1 billion. Its largest purchase was for Beats Electronics, which it acquired for $3 billion in 2014.
Apple’s 5 Biggest Acquisitions
Acquisition (Year) | Amount | Category |
---|---|---|
Beats (2014) | $3 billion | Music |
Dialog Semiconductor (2018) | $600 million | Manufacturing |
Anobit (2011) | $500 million | Manufacturing |
Shazam (2017) | $400 million | Music |
NeXT Computer (1996) | $400 million | Technology |
Apple’s increasing music streaming efforts have been evident, with the acquisition of Shazam three years after it purchased Beats Electronics.
In an intriguing recent turn of events, Apple recently announced it will acquire the majority of Intel’s smartphone modem business. This $1 billion deal will allow Apple to build all of its devices in-house, and better prepare the iPhone for the upcoming 5G push.
Facebook’s largest acquisition has been WhatsApp Messenger, which it purchased for $22 billion in 2014. The WhatsApp acquisition is the second largest of the Big Five, following Microsoft’s LinkedIn purchase.
Facebook’s 5 Biggest Acquisitions:
Acquisition (Year) | Amount | Category |
---|---|---|
WhatsApp (2014) | $22 billion | Social Media |
Oculus (2014) | $2 billion | Technology |
Instagram (2012) | $1 billion | Social Media |
LiveRail (2014) | $500 million | Marketing |
Onavo (2013) | $200 million | Analytics |
Aside from absorbing any competitors who encroach on Facebook’s turf—such as WhatsApp and Instagram—Facebook’s takeovers have been aimed at venturing into uncharted territory. The acquisition of virtual reality manufacturer, Oculus, is evidence of Facebook’s bet on virtual reality as the future of engagement.
“After games, we’re going to make Oculus a platform for many other experiences. Imagine enjoying a court side seat at a game, or studying in a classroom of students and teachers all over the world —just by putting on goggles in your home.”
—Mark Zuckerberg
Predicting the Next Shift
The Big Five are some of the most influential companies in the world today.
Beyond rapidly reshaping the global tech landscape, these acquisitions provide important context on how tech companies consolidate power—and, more importantly, what will fuel their next phase of growth.
Technology
Charted: The Jobs Most Impacted by AI
We visualized the results of an analysis by the World Economic Forum, which uncovered the jobs most impacted by AI.
Charted: The Jobs Most Impacted by AI
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Large language models (LLMs) and other generative AI tools haven’t been around for very long, but they’re expected to have far-reaching impacts on the way people do their jobs. With this in mind, researchers have already begun studying the potential impacts of this transformative technology.
In this graphic, we’ve visualized the results of a World Economic Forum report, which estimated how different job departments will be exposed to AI disruption.
Data and Methodology
To identify the job departments most impacted by AI, researchers assessed over 19,000 occupational tasks (e.g. reading documents) to determine if they relied on language. If a task was deemed language-based, it was then determined how much human involvement was needed to complete that task.
With this analysis, researchers were then able to estimate how AI would impact different occupational groups.
Department | Large impact (%) | Small impact (%) | No impact (%) |
---|---|---|---|
IT | 73 | 26 | 1 |
Finance | 70 | 21 | 9 |
Customer Sales | 67 | 16 | 17 |
Operations | 65 | 18 | 17 |
HR | 57 | 41 | 2 |
Marketing | 56 | 41 | 3 |
Legal | 46 | 50 | 4 |
Supply Chain | 43 | 18 | 39 |
In our graphic, large impact refers to tasks that will be fully automated or significantly altered by AI technologies. Small impact refers to tasks that have a lesser potential for disruption.
Where AI will make the biggest impact
Jobs in information technology (IT) and finance have the highest share of tasks expected to be largely impacted by AI.
Within IT, tasks that are expected to be automated include software quality assurance and customer support. On the finance side, researchers believe that AI could be significantly useful for bookkeeping, accounting, and auditing.
Still interested in AI? Check out this graphic which ranked the most commonly used AI tools in 2023.
-
Money7 days ago
Visualizing All of the U.S. Currency in Circulation
-
Stocks2 weeks ago
Ranked: South Korea’s Largest Companies by Market Capitalization
-
VC+2 weeks ago
What’s New on VC+ in March?
-
Markets2 weeks ago
Confidence in the Global Economy, by Country
-
Wealth1 week ago
Mapped: Where Do the Wealthiest People in the World Live?
-
Misc1 week ago
Ranked: Global Airlines with the Most Plane Crashes
-
Technology1 week ago
Visualizing iPhone 15 Production by Manufacturer in 2023
-
Automotive1 week ago
Visualizing Global Electric Vehicle Sales in 2023, by Market Share