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Reasons for acquisitions in technology, telecommunications

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Why do you think there have been so many acquisitions in the technology sector, the telecommunications sector and the regional banking sector? In the future, do you see any sectors that might be getting a big pickup in acquisitions? Why?

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First there are some general reasons why acquisitions occur in most any industry:

1. It is an effective method to eliminate the competition.
2. It can be a relatively cheap way to acquire information, technology, systems, assets or employees.
3. Post acquisition can be a way to consolidate costs, spread the overhead and enhance profits.

Why do you think there have been so many acquisitions in the technology sector, the telecommunications sector and the regional banking sector?

For the technology sector, the reasons could relate to the time and cost it takes to develop the specific technologies to keep up with the competition in a fast moving marketplace. Even hiring the talent to develop the technologies takes time and effort.

Google, for example, was conducting seminars for students at colleges many years ago. They were looking for talented people with potential. They also used intern programs very ...

Solution Summary

The 589 word solution explores reasons for acquisitions in general and then in specific industries. The solution contains numerous examples.

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Acquisitions - Verizon Wireless

Looking at the recent acquisitions of Verizon Wireless, find two acquisitions to answer the following questions about each acquisition.

1. What is the reason for acquisition that was used as the logic by your firm in justifying the acquisition? Explain your answer and support it with reasons.
2. Which of the sources of integration difficulties seem to be of concern in this acquisition? Explain your answer and support it with reasons.

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