What Tech Companies Might be Acquired by Facebook This Year
Behemoths like Facebook, Google, and Apple, make it to the top of the news every day. While sometimes, it is about new products and inventions. Sometimes, it is in the business section, related to acquisitions and mergers. Facebook’s most recent and most impactful acquisitions include Instagram and Whatsapp. These social media and chat apps are still free, but Facebook is looking forward to making billions worth of fortune from these two (the process has already begun). Facebook bought Instagram for around $1 billion. Whereas WhatsApp scored a smooth $19 billion price tag in 2014.
Facebook is the whale of all tech firms who is always ready to acquire new businesses. Facebook is quite notorious for buying out its competitors. Be it megacorps or startups, if Facebook CEO Mark Zuckerberg has his eyes set on a company, he will get it. That has been the norm so far. Facebook has acquired over 65 big and small businesses this far that includes names like Lightbox, Sofa, Oculus VR, Ascenta and ProtoGeoOy.
Rumors are, Facebook is again looking forward towards acquiring new tech companies:
Facebook now has its eyes set on Netflix. However, Facebook will be contending with the likes of Amazon and Disney to make this deal happen. Disney’s market cap is about three times of Netflix and Amazon’s market cap is about eight times. Facebook’s is about eleven times. Facebook has more chances of buying Netflix shortly. It is no doubt Netflix will be bought. It is just a question of when. On the other hand, Netflix is a fresh source of new users who are spread all across the globe. Netflix attracts niche users who are more interested in Netflix originals like the House of Cards. Almost all of us are Netflix users. This opens a new market for Facebook and other tech giants.
The main competition between Facebook, Apple and Amazon is to secure their market. However, getting people to be dedicated to only one brand is nothing but a fool’s dream. Unless the leader among these tech tycoons also acquires every other brand we use.
The perfect example of this is Sony Pictures. Although Apple, Amazon and Facebook are doing a brilliant job of keeping their patrons glued to their brands, acquiring Sony Pictures will expose them to a newer market. Sony Pictures already has its own followership. The entertainment division of Sony became an acquisition target after the Sony Pictures CEO Michael Lynton stated that he would step down from the CEO’s throne and head Snap Inc. getting Sony Pictures is also getting hands on a lot of original content like The Blacklist, Seinfeld and Breaking Bad worth billions of USD.
Facebook has tried to copy Snapchat for so long that it has given birth to its genre of tech jokes. Far back in 2013, Facebook tried to buy Snapchat for a whopping $3 billion. After Instagram had introduced the “stories” feature, it was clear that Facebook has not forgotten its failed bid and lost love for Snapchat.
It is no secret that Facebook wants to acquire Snapchat. The current market value of Snapchat is around $19 billion. Facebook’s market cap is about twenty-five times more than that of Snapchat. The tech giant was jittery to place another bid since its first failed try in 2013.
With the introduction of Instagram stories and disappearing messages, Facebook might just be looking at another possible acquisition in 2017.
This tech company may not see a lot of profit; it does see a lot of traction. It is a hub of potential customers, who can bring billions of dollars’ worth business to Facebook. Other tech giants like Cisco, Oracle, IBM, and Salesforce are there in line to acquire Slack. However, we think, with a market cap of $439 billion and rising; Facebook is the first contender in the list.
If Facebook manages to acquire Mpesa in one of the largest buyouts in Africa’s history, it will become a truly global company. The mobile money giant seems to have caught the Facebook master mind’s eye when he was in Kenya in 2016.
If the acquisition does happen, Mpesa will finally see global trends in prices for its services. Revenues will soar. Infrastructure will become better; they will have a better budget for website design pricing. Their current app shows a lot of friction that may smoothen out after the acquisition.It will enjoy a much larger customer base.
Zuckerberg’s visit to Lagos
Very recently, Mark Zuckerberg’s visit to Lagos, Nigeria stirred up controversy and speculations in the tech market. The CEO & Co-founder of Seedstars World, Alisée de Tonnac responded by saying, “It’s normal for him to visit Nigeria. It is one of the largest markets. There are over 16 million Facebook users.” It is hailed as the silicon valley of Africa. If Zuckerberg wants to acquire a few startups in Nigeria to expand Facebook’s bases, we will not be surprised at all.
What are the few Nigerian startups Facebook is looking at?
Yaba and its outskirts are home to some promising startups. These may not be making millions, but these are gaining attention from all over the country of Nigeria.
Paga is a Nigerian mobile payment service. It is one of the leading ones too. This has attracted Zuckerberg’s attention, and he might make a move in 2017.
Kangpe is the winner of startup wars, Seedstars. This startup is a dedicated medical forum that connects people to medical associations and personnel. Its uniqueness and increasing profit are enough to attract Facebook’s interest.
With a population of 180 million, Nigeria is indeed fertile ground for Facebook to expand its operations.
Over with it
There is no saying in which direction Facebook will move first. We can only predict the most likely buyouts and acquisitions shortly. Will miss buy-outs like LinkedIn and missed bids like Snapchat; Facebook is now hungry for a fresh market and some fresh shares. All in all, 2017 is going to be an interesting year for technology and business.
Author: Sourabh Sharma
Sourabh Sharma is a professional writer for Hridik.com.
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