The BEST Acquisition of ALL TIME 🔥
Acquisition is one of the most fascinating thing. Acquire properly, a company can yield 100x returns. Improperly, a company can be doomed. Today, we look at some of the BEST acquisitions of ALL time.
Here is an EASY thread👇👇
Acquisition is one of the most fascinating thing. Acquire properly, a company can yield 100x returns. Improperly, a company can be doomed. Today, we look at some of the BEST acquisitions of ALL time.
Here is an EASY thread👇👇
Honorable mention - $DIS acquires Pixar & Marvel
$DIS acquired Pixar for $7.4 billion in 2006 and Marvel for $4 billion in 2009. Pixar has then created famous animations such as Wall E, Toy Story 3, Up, Inside Out, Brave, Coco, generating a gross box office of $10 billion.
$DIS acquired Pixar for $7.4 billion in 2006 and Marvel for $4 billion in 2009. Pixar has then created famous animations such as Wall E, Toy Story 3, Up, Inside Out, Brave, Coco, generating a gross box office of $10 billion.
Marvel Cinematic Universe has become the single greatest movie universe the world has ever seen. The Marvel Cinematic Universe has created a total worldwide box office revenue of $22.56 billion. All these do not include the profits from related merchandise and video games
$DIS with Pixar and Marvel becomes an unstoppable entertainment powerhouse. In 2019, $DIS accounted for a staggering 38% of the US box office. Since $DIS’s acquisition of Pixar, $DIS has increased from $33.81 to $175.77, a 419.92% growth.
No. 8 - $EBAY acquires $PYPL
In 2002, $EBAY purchased $PYPL for $1.5 billion. 13 years later, in 2015, $PYPL was spin off from $EBAY, and $PYPL was valued at a whopping $47 billion, representing a return of 3033% for $EBAY, compare to a 187% return from the S&P 500.
In 2002, $EBAY purchased $PYPL for $1.5 billion. 13 years later, in 2015, $PYPL was spin off from $EBAY, and $PYPL was valued at a whopping $47 billion, representing a return of 3033% for $EBAY, compare to a 187% return from the S&P 500.
When $PYPL was separated, $PYPL was the largest fin-tech company in the world. $PYPL made a revenue of $9.2 billion, $1.2 billion of net profit, with 282 billion of total payment volume and 179 million users. $PYPL also represented over 40% of $EBAY’s earnings.
No. 7 - $FB acquire WhatsApp
$FB acquired WhatsApp in 2014 for 19 billion dollars. $FB acquired WhatsApp because it has 500 million users, and WhatsApp was adding 1 million users per day! WhatsApp has helped $FB to grow in developing countries where WhatsApp is widely used.
$FB acquired WhatsApp in 2014 for 19 billion dollars. $FB acquired WhatsApp because it has 500 million users, and WhatsApp was adding 1 million users per day! WhatsApp has helped $FB to grow in developing countries where WhatsApp is widely used.
Although WhatsApp has only brought in between 5-10 billion of Revenue in 2020, WhatsApp has become the 3rd most downloaded app in the last decade, only behind $FB’s own app and $FB messenger. WhatsApp currently has more than 2 billion users.
WhatsApp allows $FB to truly become an international social media company covering all countries, developed, developing and undeveloped, in the world.
No.6 - ABC acquires ESPN
ABC has acquired ESPN in 1984 for $188 million. ABC’s acquisition of ESPN is the undisputed best media acquisition as ESPN become the ‘sport streaming’ synonym in the US.
ABC has acquired ESPN in 1984 for $188 million. ABC’s acquisition of ESPN is the undisputed best media acquisition as ESPN become the ‘sport streaming’ synonym in the US.
Currently, ESPN has over 86 million television households in the US and broadcasts in over 200 countries. It is estimated that ESPN is worth more than $50 billion in 2021! Interestingly, ABC is currently only worth 3.2 billion today.
ESPN has generated $11.4billion revenue in 2019, that is 60X the price ABC has paid. Even if you factor in an inflation of 10%, what ESPN has earned in 2019 is still more than what ABC paid for ESPN in 1984!
No.5 - $GOOG acquires DoubleClick
$GOOG has acquired DoubleClick for $3.1 billion in 2007. $GOOG had a weakness in display advertisement. DoubleClick solved this, as it has expertise in serving display ads and most advertisers were on DoubleClick’s marketplace to place those ads.
$GOOG has acquired DoubleClick for $3.1 billion in 2007. $GOOG had a weakness in display advertisement. DoubleClick solved this, as it has expertise in serving display ads and most advertisers were on DoubleClick’s marketplace to place those ads.
DoubleClick effectively extended $GOOG's advertisement reach from just $GOOG's own properties to the entire internet, making $GOOG the advertisement powerhouse. Double click allowed $GOOG to do search advertising in the way that $GOOG is currently doing.
In 2019, DoubleClick and its associated products are estimated to generate over $20 billion revenue for $GOOG. DoubleClick is estimated to be worth more than 126 billion as of 2020! A 42X from $GOOG's initial purchase price!
No.4 - $GOOG acquires YouTube
Google acquired YouTube for 1.65 billion in 2006. YouTube is the world’s 2nd highest traffic search engine, behind $GOOG. With the acquisition, $GOOG has scooped up its biggest search engine threat, becoming the advertising powerhouse.
Google acquired YouTube for 1.65 billion in 2006. YouTube is the world’s 2nd highest traffic search engine, behind $GOOG. With the acquisition, $GOOG has scooped up its biggest search engine threat, becoming the advertising powerhouse.
In 2021, YouTube has 2.3 billion users, with over 79% of internet users having a YouTube account. 1 billion hours of video on YouTube are being watched every day and 500 hours of videos are uploaded to YouTube every minute!
YouTube has generated 19.7 billion revenue and is estimated to worth up to $170 billion in 2020, representing a 100x return for Google in 15 years!
No.3 - $GOOG acquires Android
Google acquires Android for a mere $50 million in 2005. Android then goes on to transform the smartphone industry. As of 2020, there are 2.8 billion Android users, making Android the most dominant OS for smartphone , with around 75% of market share!
Google acquires Android for a mere $50 million in 2005. Android then goes on to transform the smartphone industry. As of 2020, there are 2.8 billion Android users, making Android the most dominant OS for smartphone , with around 75% of market share!
Android is estimated to have contributed to +72 billions of $GOOG’s market cap, a staggering 1440x return on invest. $GOOG M&A chief has even called the acquisition of Android, $GOOG's best deal ever.
2. $AAPL Acquires NeXT
$AAPL acquires NeXT in 1997 for 404 million. This acquisition is possible the $AAPL's biggest and boldest business move, as the acquisition brings $AAPL's legendary CEO Steve Jobs back into $AAPL after his conflict with John Sculley.
$AAPL acquires NeXT in 1997 for 404 million. This acquisition is possible the $AAPL's biggest and boldest business move, as the acquisition brings $AAPL's legendary CEO Steve Jobs back into $AAPL after his conflict with John Sculley.
The NeXT software also laid the foundation for $AAPL's future success, as NeXT provided $AAPL a foundation for $AAPL's modern operating system, saving $AAPL from its competition with $MSFT.
It is very hard value of this acquisition, but it is likely that without this acquisition, there will be no Steve Jobs and Mac OS. $AAPL might likely failed. With this acquisition, in 1997, the post-split $AAPL price was $0.148, and now $AAPL is at $136.1, a 900X increase!
No.1 - $FB acquires Instagram
Facebook acquired Instagram for 1 $billion in 2012. A shocking sum at the time considering that Instagram only had 13 employees!
Facebook acquired Instagram for 1 $billion in 2012. A shocking sum at the time considering that Instagram only had 13 employees!
The acquisition wasn’t a sure bet because Instagram merely had 25 million users and is considered to just be a ‘photo sharing app’.
Fast forward to 2021, we knew that $FB by acquiring Instagram, has eliminated $FB's biggest threat and widened $FB's presence in mobile social media. With Instagram, $FB truly becomes an all-purpose social media company with a much younger audience.
Instagram currently has over 1 billion monthly active users and contributes to over $20 billions of $FB's annual revenue, 20x the price $FB paid for Instagram! Instagram is now worth +100 billion, representing a 100x ROI for $FB in less than a decade! END
Thank you for reading this thread! I hope the thread was interesting. Please leave a comment 👇 if I missed out some BEST acquisitions or got the order wrong 😊 Lastly, what acquisitions do you think have the potential to be one of the best acquisitions, ten years from now?
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