Tesla CEO Elon Musk struck a deal on Monday to buy social media giant Twitter for $44 billion. In a statement released on the microblogging platform, the world’s richest man stated that he wants to make Twitter “better than ever.”
Twitter’s sale to Musk will see the company become private. The social media giant’s shares had reportedly halted for a while on Monday amid reports of the deal. NASDAQ ended higher after the announcement. Shares of Twitter also jumped 5.6 percent after the news broke.
As the news about Musk’s takeover of Twitter dominates the headlines, let’s take a look at mergers and acquisitions in the tech sector that shook the world:
Elon Musk buys Twitter ($44 billion):
The deal is expected to be one of the most prominent mergers and acquisitions in the tech sector, with Musk acquiring Twitter for $54.20 a share. The price is 38 percent over the company’s stock close on 1 April this year.
Yahoo buys Tumblr ($1.1 billion):
In 2013, Yahoo bought the social media platform Tumblr for $1.1 billion. However, six years later, the social blogging network was sold to the owner of WordPress for an undisclosed amount, according to reports.
Microsoft buys Yammer ($1.2 billion)
Microsoft’s social media platform Yammer was purchased for $1.2 billion in 2012. The platform is now part of the Microsoft 365 enterprise suite and is only accessible to business users who have access to a Microsoft 365 Enterprise plan.
Twitter buys Vine ($970 million):
The social media giant acquired the short video-making website for $970 million in 2012. According to A TechCrunch report, the platform became the number 1 app on the iTunes app store six months after Twitter acquired it. At one point, Vine boasted over 200 million active users. However, the platform soon declined due to stiff competition from other social media platforms.
Twitter shut it down in 2016.
Facebook buys WhatsApp ($19 billion):
The social media giant acquired messaging service Whatsapp for $19 billion in 2014. According to a Reuters report, the company paid WhatsApp $12 billion in stock, $4 billion in cash, and $3billion in restricted stock that vests over several years.
The social media giant still owns the messaging app.
Facebook buys Instagram ($1 billion):
Facebook (now Meta) bought the photo and video sharing platform for $ 1 billion. An email exchange between Facebook founder Mark Zuckerberg and former Chief Financial Officer David Ebersman revealed that the company was acquired as it was seen as a ‘threat.’ Instagram is part of Meta, Facebook’s parent company.
Google buys YouTube ($1.65 billion):
Google purchased YouTube way back in 2006. The video-sharing platform is one of the most popular social media applications now and remains one of the most visited websites.
Google buys Fitbit ($2.1 billion):
Google bought Fitbit for $2.1 billion in an all-cash deal in 2019. According to TechCrunch, the move was part of Google’s entry into the wearables sector, rivaling Apple-dominated.
Apple buys Beats by Dre ($3 billion):
Apple acquired Beats Electronics (maker of popular headphones) and subscription streaming music service Beats Music for $3 billion, including $400 million in restricted stock. Beats co-founders Jimmy Iovine and Dr. Dre also joined Apple, according to a press release by the company.
Google buys Nest ($3.2 billion)
Google purchased Nest in 2014 for $3.2 billion in cash. The acquisition of the smart thermostat maker was part of Google’s efforts to boost its range of smart devices.
Microsoft buys Nokia ($7.2 billion)
Microsoft bought Nokia’s phone business in 2013. But the $7.2 billion deal failed, and two years later, the company wrote off the industry and cut down several thousand jobs.
PayPal buys Honey ($4 billion)
The payments company brought the online shopping deal service for $4 billion in 2019. This remains Paypal’s biggest acquisition to date.
Microsoft buys GitHub ($7.5 billion)
Microsoft acquired Github, the open-source software development and code hosting platform, in 2018. According to a press release, Microsoft made the deal, which cost $7.5 billion, to “strengthen our commitment to developer freedom, openness, and innovation,”
Microsoft buys Skype ($8.5 billion)
Microsoft bought Skype for $8.5 billion back in 2011. The video conferencing platform saw a massive rise in users after the start of the COVID-19 pandemic before the popularity of Zoom overshadowed it.
Microsoft buys LinkedIn ($26.2 billion)
Microsoft also bought LinkedIn for an all-cash deal in 2016 for $196 per share. The $26.2 billion deal saw the tech giant acquire one of the biggest professional networking and job search websites.