2021 has been a year of mergers and acquisitions (M&A) that have shaken the business world. From big-ticket deals between retail giants to tech companies, the M&A landscape has been buzzing with activity. In this comprehensive guide, we bring you the top five business news M&A of 2021 that have made headlines, created disruptions, and set the tone for what’s to come.
1. Amazon’s Acquisition of MGM
In May 2021, Amazon made a big move by acquiring Hollywood studio MGM for $8.45 billion. The deal is expected to give Amazon access to MGM’s vast library of content, including popular franchises like the James Bond series, Rocky, and Creed. The acquisition is also seen as Amazon’s move to take on Netflix and Disney in the streaming wars. With this deal, Amazon is aiming to expand its already impressive content library and give its Prime Video platform an edge over rivals.
2. Microsoft’s Acquisition of Nuance Communications
In April 2021, Microsoft announced its plans to acquire Nuance Communications for $19.7 billion. Nuance is an AI and speech recognition company that provides software solutions to the healthcare industry. The acquisition is expected to bolster Microsoft’s cloud offerings in the healthcare sector and strengthen its position in the industry. The M&A is also a strategic move by Microsoft to take on rivals like Google and Amazon, who are investing heavily in the healthcare space.
3. Square’s Acquisition of Afterpay
In August 2021, payment company Square announced its plans to acquire Australian digital payment giant Afterpay for $29 billion. The deal is expected to help Square expand its presence in the global payments market and provide a new way for merchants to attract and retain customers. The acquisition will allow Square to offer its customers an interest-free installment payment option, which has seen significant adoption in the Australian market. The deal also reflects Square’s ambition to become a major player in the payments space and compete with the likes of PayPal and Stripe.
4. Verizon’s Sale of Yahoo and AOL
In May 2021, Verizon announced the sale of Yahoo and AOL to private equity firm Apollo Global Management for $5 billion. The sale marked the end of Verizon’s failed attempt to challenge Google and Facebook in the online advertising market. Verizon had acquired Yahoo for $4.5 billion in 2017 and AOL for $4.4 billion in 2015. The sale is expected to help Verizon streamline its business and focus on its core wireless business.
5. Aon’s Aborted Merger with Willis Towers Watson
In March 2021, global insurance broker Aon announced its plans to merge with rival Willis Towers Watson in a $30 billion deal. However, the merger was later called off due to regulatory concerns over market concentration. The proposed merger would have created the world’s largest insurance broker with a market capitalization of over $80 billion. The deal’s failure highlights the challenges of navigating regulatory hurdles in the M&A landscape and the importance of conducting thorough due diligence.
In conclusion, the M&A landscape in 2021 has been marked by big deals, strategic moves, and challenges. The top five business news M&A of 2021 that have made headlines, created disruptions, and set the tone for what’s to come. From Amazon’s acquisition of MGM to Microsoft’s acquisition of Nuance Communications, Square’s acquisition of Afterpay, Verizon’s sale of Yahoo and AOL, and Aon’s aborted merger with Willis Towers Watson, these deals have set the stage for what could be a transformative period for businesses across sectors.
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