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Semiconductor industry

Tech Mergers and Acquisitions Heat Up as Google Acquisitions are Speculated

Strategic Insights

— 1 min read

Tech Mergers and acquisitions are on the rise, with several major deals announced or rumored in recent months. Despite speculation about a possible Google acquisition of Twitter, other big tech deals are gaining attention. Microsoft, for instance, acquired Mojang, the developer of Minecraft, in September 2014 for $2.5 billion. Additionally, Microsoft has been in talks to acquire GitHub, a code-hosting platform, but the deal's status remains uncertain. Meanwhile, other tech companies are pursuing their own acquisitions. For example, Facebook purchased WhatsApp for $19 billion in 2014, and Twitter has been exploring options to sell its stakes in Cyanogen and Flipboard.

Key Takeaways:

  • Verizon and AOL have agreed to a $4.4 billion deal, with AOL CEO Tim Armstrong remaining in charge.
  • Avago Technologies will buy Broadcom in a $37 billion deal, creating the third-largest semiconductor supplier in the United States.
  • Intel will purchase Altera in an all-cash transaction worth $16.7 billion, expanding its data center and Internet of Things segments.
  • AT&T's acquisition of DirecTV is still pending regulatory approval, but the deal would position the company for a leading role in content distribution across mobile, video, and broadband platforms.

Statistics:

  • The Verizon-AOL deal is worth approximately $4.4 billion.
  • The Avago-Broadcom acquisition will form a company with a $77 billion enterprise value.
  • Intel's purchase of Altera is valued at $16.7 billion, with the transaction expected to close within six to nine months.
  • DirecTV is valued at $95 per share in the proposed AT&T acquisition.

Sources:

  • TheStreet, "Chris Sacca: Why Twitter Should be Bought", May 20, 2015.
  • CNBC, "History of Chris Sacca: From Backstage to Advertising Giant", May 21, 2015.
  • Forbes, "Facebook Closes $19 Billion WhatsApp Deal", October 6, 2014.
  • TheStreet, "Broadcom Shares Surge on Avago Deal", May 21, 2015.
  • NXP Semiconductors, "NXP and Freescale Announce $40 Billion Merger", March 2015.
  • Intel Corporation, "Intel to Acquire Altera Corporation in an All-Cash Transaction", May 25, 2015.
  • CNBC, "AT&T and DirecTV Deal Waiting on FCC Approval", June 4, 2015.
  • Forbes, "What a TMUS-DTV Combination Would Mean for Content and Customers", June 4, 2015.

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