With global tech markets flying high and already a number of blockbuster deals recorded in 2014, the second half of this year could yet bring some major acquisitions as tech majors look to outdo each other. Business transfer agents have certainly been doing a good job in getting the strongest valuations for the target firms, and any potential deals listed below are unlikely to be cheap for the buyers. Here are three deals that will certainly make some headlines, and which have a strong chance of going through this year.
1. Apple buys Tesla
There have been confirmed meetings between Tesla CEO Elon Musk and Apple executives in late 2013, which have led many to assume this is a good match. Teslas are known for their luxurious, electric cars that have proved to detractors that automobiles can still be sexy and powerful while moving on from traditional energy sources. The Tesla CEO has made it clear that the brand intends to move down the ladder, first by capturing the luxury goods market and then moving into the price range of the average consumer. A similar strategy was performed by Apple with the iPhone.
Since the passing of Steve Jobs, Apple has lost an innovative edge that brought them to where they are today. Essentially, the firm needs to find new sectors of growth, away from a massively saturated smartphone market. Acquiring Tesla would be expensive, but could allow Apple to open up a new and profitable sector.
2. Google buys Uber
In its largest ever investment, Google Ventures invested $258 million in Uber in mid-2013. Despite it being a later-stage investment, it was not a Google Capital deal, mainly because of the heavy Google Ventures involvement in sourcing and negotiating. The $258 million represented 86% of Google Ventures’ $300 million annual fund. The platform for a bigger move in the company that specializes in transportation networks and ridesharing technology is potentially already there. The relationships have been built.
Reported interest from Google makes perfect sense, as Google has been pioneering a vision of the smart car for a while. Uber’s taxi service mixed with smart cars and Google’s geo-location technology would be a major force in the emerging field of smart transportation.
3. eBay buys Etsy
Etsy, the e-commerce website focused on handmade or vintage items and supplies, as well as unique factory-manufactured items under its own guidelines, has been able to tap into a strong niche that the somewhat stale model offered by eBay has been lacking. While eBay has focused on entering and improving its footing in international markets, back in the USA the brand has lost some of its innovative shine, made all the more apparent by Amazon’s continuing innovation push. Users of eBay have also been frustrated with the inconsistent approach the company takes to moderating cases of fraud and a lack of proper security.
A strong purchase would bring much-needed optimism to the global marketplace. Etsy would be a logical choice simply because its business model is so similar. Theoretically, an eBay-owned Etsy could operate as the vintage and artisanal arm of the marketplace.
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