Tech mergers up 41 percent in third quarter
The third quarter of 2014 saw a significant rise in tech mergers, with the total number up 41 percent from the second quarter. Experts report the figures have brought tech mergers to a height unmatched since the dot-com era, when companies consolidated to build the tech giants we know today. Entrepreneurs looking to sell their companies for a premium might consider now as the time to take action.
Last quarter, there were 923 deals between tech companies, according to MarketWatch. Overall, those mergers were valued at $73.7 billion, and large companies broke the all-time quarterly record for deals valued over $1 billion. In total, there were 19 such deals in the third quarter, leading analysts eager to follow the trend through the end of 2014. Here are some of the notable mergers:
- Amazon purchased Twitch, an internet video channel, for $1 billion
- Yahoo bought ad service BrightRoll for $640 Million
- Microsoft acquired video game Minecraft for $2.5 billion
- Google purchased two British artificial intelligence firms for an undisclosed amount, after acquiring another early this year
In summation, tech giants are harnessing the capabilities of smaller operations to diversify their business models, reports MarketWatch's Jennifer Booten.
"This comes on top of sweeping technological changes that are reverberating across industries," writes Booten. "Cloud computing and mobile devices have taken over the way business is conducted and personal data is stored. Artificial intelligence and virtual reality have changed the way entertainment is consumed. And the Internet of Things has injected the Internet into, well, everything."
On this blog we will explore these and similar mergers in more detail, but for now the bottom line is clear: Tech is experiencing a climate of mergers it hasn't seen since the dot-com boom.