Top 10 Business Mergers and Acquisitions of All Time

Summary

This video from WatchMojo highlights the top 10 business mergers of all time, showcasing major corporate deals that reshaped industries. The list includes mergers such as Pfizer’s acquisition of Pharmacia, the creation of Royal Dutch Shell, AT&T’s purchase of BellSouth, and Google’s acquisition of Applied Semantics. Each merger is examined for its strategic impact, with a focus on those that helped companies dominate their respective markets. The video also explores the role of subsidiaries and innovation in these mergers, highlighting both their successes and challenges in the ever-evolving corporate world.

Takeaways

• 😀 Pfizer's acquisition of Pharmacia in 2002 for $60 billion enabled the pharmaceutical giant to solidify its leadership and continue expanding with later acquisitions like Wyeth.
• 😀 The merger between Royal Dutch Petroleum and Shell Transport & Trading in the early 20th century created a global oil powerhouse, Royal Dutch Shell, now expanding into renewable energy.
• 😀 AT&T's transformation began with Southwestern Bell's 2005 purchase of BellSouth for $86 billion, which helped it reclaim dominance in the telecom industry.
• 😀 BP's acquisition of Amoco in 1998 for $50 billion created BP PLC, which became one of the world's largest oil companies despite facing major setbacks like the Deepwater Horizon spill.
• 😀 Facebook's 2012 acquisition of Instagram for $1 billion enabled the social media giant to dominate mobile photo sharing and expand its user base significantly.
• 😀 Exxon and Mobil's 1999 merger for $81 billion created ExxonMobil, the world's largest publicly traded oil company, a direct descendant of Rockefeller's Standard Oil.
• 😀 Citigroup emerged from the merger of Travelers Group and Citicorp, creating the largest financial services network globally, despite setbacks during the 2008 financial crisis.
• 😀 JPMorgan Chase's 2004 acquisition of Bank One for $58 billion solidified its position as the largest bank in the U.S., with a massive asset base exceeding $2.5 trillion.
• 😀 Google’s 2003 purchase of Applied Semantics for $102 million led to the creation of Google AdSense, a key driver of the company’s revenue and dominance in digital advertising.
• 😀 Verizon Communications formed through the merger of Bell Atlantic and GTE, a significant move in the telecom industry that resulted in Verizon becoming the largest wireless provider in the U.S.

Q & A

What is the main focus of the video?

The video focuses on the top 10 business mergers of all time, highlighting key mergers and acquisitions (M&A) that helped companies expand into new markets and consolidate leadership positions.

What criteria were used to select the mergers for this list?

The mergers were selected based on the prominence of the acquired subsidiaries, the strategic value of the deal, and the current success of the merged companies. The video excluded mergers that ultimately failed.

What significant event led to Pfizer acquiring Pharmacia?

Pfizer acquired Pharmacia in 2002 for $60 billion after Pharmacia had acquired Upjohn and Monsanto, including the development of the drug celecoxib, which Pfizer had been interested in.

How did the merger of Royal Dutch Petroleum and Shell Transport and Trading create Royal Dutch Shell?

The merger of the two companies aimed to compete with Standard Oil, creating a global energy leader that expanded into various subfields, including renewable energy and power generation, maintaining a strong presence in the global market.

What was the impact of AT&T's acquisition of BellSouth?

The acquisition of BellSouth in 2006 allowed AT&T to solidify its position as the second-largest mobile phone provider in the U.S. through stronger contract deals and marketing tactics, including claims about the strongest 4G signal.

How did BP's merger with Amoco affect its position in the oil industry?

The 1998 merger created BP PLC, a major player in the oil industry. Despite challenges such as the Deepwater Horizon oil spill, BP remains one of the largest oil companies globally, with vast assets and revenue streams.

What was the significance of Facebook's acquisition of Instagram?

Facebook acquired Instagram for $1 billion in 2012, which proved to be a highly strategic move as Instagram became one of the most popular mobile apps and contributed significantly to Facebook's growth in users and engagement.

Why was the Exxon-Mobil merger in 1999 considered important?

The Exxon-Mobil merger in 1999 created one of the largest and most powerful oil companies, consolidating the strengths of both companies to dominate the industry in terms of revenue and market share.

How did Citigroup emerge from the merger of Travelers Group and Citicorp?

The merger between Travelers Group and Citicorp in 1998 resulted in Citigroup, which became the largest financial services company in the world, though it faced setbacks during the 2007-2008 financial crisis.

What was the strategic significance of Google's acquisition of Applied Semantics?

Google's acquisition of Applied Semantics in 2003 helped Google develop AdSense, which became a major revenue driver, allowing Google to expand and acquire other entities like Android and YouTube.

What led to the creation of Verizon Communications Inc?

Verizon was formed in 2000 when Bell Atlantic merged with GTE, creating a major telecommunications company. The merger strengthened Verizon’s position in the U.S. market, leading to its dominance in the wireless service sector.