Large M&A transactions are becoming a key to survival for companies. In today’s globalized economy, a company’s own resources can only help them grow so quickly; acquiring and merging with other firms is necessary to keep up with the competition.
M&A has been especially prevalent in the tech and telecommunications industries. In the race to 5G, T Mobile and Sprint announced their merger which will help them pool resources to get the network up and running. AT&T’s acquisition of Time Warner represents the consolidation happening all over the streaming services industry- the Department of Justice finds the consolidation monopolistic and is taking a closer look at the deal.
The most recent news in M&A is with Apple- the company has purchased Dialog, a major supplier of iPhone parts. This is Apple’s biggest deal, but not the first of its kind; the company has a history of acquisitions in an effort to vertically integrate its manufacturing.
Could corporate consolidation pose a danger to the competitive landscape in tech and telecommunications? What will this landscape look like in a decade if consolidation continues and hypervaluations in tech stocks don’t hold? Make sure to keep a close eye as it all unfolds.