Unicorn Acquisitions

230461728_454833a9e7_oApple made a big splash in the news when people started talking about the possibility of the computer giant acquiring Beats Electronics for $3.2 billion. The reason for the big stink is that it would have been the largest acquisition ever for Apple in their 38 years. The other, closest acquisition is the $429 million the company paid out for NeXT in 1996. The larger picture indicates that the real reason the Apple acquisition was such a big deal is that it comes in a string of, almost $1 billion “unicorn” acquisitions by major companies over the last year, more specifically in tech. The most notable of these acquisitions include WhatsApp and Oculus being acquired by Facebook, Waze and Nest Labs being bought up by Google, Microsoft absorbing Nokia, and Yahoo buying Tumblr. The real reason this surge of transactions is so significant is that prior to this year the last eight billion-dollar acquisitions of tech companies occurred over the span of ten years. The media flocked to these unicorn acquisitions covering the amount of money being exchanged, how the financing was going to work, the strategic ideal behind the deals, and the chance for success, the real story is how companies and investors need to adapt to enter and exit the market with this radical shift in who is buying and owning companies.

Enterprise acquisitions traditionally have made up most of the transactions over the past ten years. These, more traditional companies, include EMC, Oracle, IBM, and Cisco and they regularly make these multi-billion dollar transactions. For a more specific example consider that Cisco has made seven of these unicorn acquisitions for $25.2 billion and Oracle has gone through 10 unicorn acquisitions for $42.9 billion. Although these enterprise transactions occur frequently, the density of transaction in the tech/start-up industries in the past year have been unprecedented and it will be interesting to keep an eye out to see where things go from here.

from Douglas MacFaddin’s Tech Market Page http://ift.tt/1lqnndz

Advertisements

Published by: Doug MacFaddin

Douglas Willis MacFaddin was born June 16, 1961 in the Miamisburg Hospital to Patricia Ann MacFaddin and Richard Willis MacFaddin. My mother’s maiden name is Morrison and she is the youngest of seven children who were raised in Lycippus, PA. My father was the second of four children and was a twin. He was raised in the town of Viola, DE. At the time of my birth, my father worked at the Mound Laboratories in Miamisburg, Ohio in research. Mound was an Atomic Energy Commission facility for nuclear weapon research during the Cold War. My mother made a home for our family. My father passed away in 1991 and my mother is currently living in Avon, CT. Doug MacFaddin is the oldest of five children (Doug, R. Stuart, Anne Marie, Megan and Mary (Heather)). I lived in Ohio for two years, spent the next seven years in Murrysville, PA (outside of Pittsburgh), moved to Little Silver, NJ and relocated my senior year in high school to Avon, CT. My four siblings currently live with their families in Avon, CT and are members of St. Ann’s Church. I attended Mother of Sorrows School in Murrysville, PA. In NJ, I attended Little Silver Point Road School, Markham Place School and Christian Brothers Academy (CBA) in Lincroft, NJ for three years. My senior year, I attended Avon High School and I then spent the next four years at Union College, Schenectady, NY. I received a BS in Industrial Economics and graduated in June 1983. While at Salomon Brothers, I was asked to attend a two-week seminar for Public Finance at the University of Michigan in 1986. In Little Silver, I was involved in Troop 126 where I achieved the rank of Life Scout and was both a Patrol Leader and a Senior Patrol Leader. I also was an alter boy at St. James Catholic Church and spent summers a the Ship Ahoy Beach Club in Seabright, NJ and caddying at the Rumson Country Club. At Christian Brothers Academy, I wrestled for the varsity squad for three years. I took second in the districts my junior year and went on to the regionals. I also ran on their cross country team freshman year and was part of the CBA Colt team that hasn’t lost a duel meet since 1973. My senior year at Avon, I won the wrestling States (S). I went on to wrestle at Union College and qualified for the Div III nationals twice (1981, 1982) and was co-captain both years. My senior year at Avon, CT, I also won the States (S) in pole vaulting. It was the first time Avon High School had a state champ in two sports in the same year. During my four years, I earned nine varsity letters between wrestling, track and football. In 1979, I was accepted into The National Honor & Merit Scholars Society. Upon graduating from Union College, I accepted a position at Salomon Brothers Inc in August 1983. I was an analyst in their Public Finance department at One New York Plaza. I lived in Park Slope, Brooklyn and spent the next four years working at Salomon Brothers. As a result of Black Monday, October 19, 1987 the Public Finance Department of Salomon Brothers was jettisoned to conserve capital. By November 1, 1987, I was working at Dean Witter Reynolds in the new Public Finance Department made up of many of my former Salomon Brother’s colleagues. The new Department was located on the 57th floor of 2 World Trade Center.

Categories UncategorizedTagsLeave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s