Microsoft is up and is flexing its arm by going a spending spree.
It is that time, when Silicon Valley start-ups valuations are starting to cool down, and the major tech giants are going on a shopping spree by buying them out. Company trackers have been monitoring the recently outlined some M&A trends over the past few years, and Microsoft has been seen making the biggest strategic shift in their acquisition strategy under their newly appointed CEO Satya Nadella. The software giant has now scooped up almost 18 companies last year, according to the analysis. That’s more than any of its competitors, which includes Apple and Alphabet (A Google Subsidiary).
In the year 2015, Apple bought 15 new companies, while Alphabet has purchased 16. Alphabet has always been consistent in its buying and Apple has also sped-up its acquisition activity under Tim Cook. But, Nadella has gone all out when it comes to acquisitions. This is indeed a strategic move by him, as Nadella is aware of Microsoft’s relatively weak position in current markets like mobile, and wants to figure out a better and faster way to strengthen the company’s from within when they are not focussing on making the operating system or the device. Among the most notice able mobile-related acquisitions were apps like Acompli that rebranded as the new mobile Outlook), adding some more to the list is Sunrise, Wunderlist, and SwiftKey.
Apple also appeared to ready its own increase at its own rate of acquisitions, even as the Macbook maker has been continuously acqui-hiring talent predominantly in the virtual/AR over the past year. Tim Cook has said that Apple has been acquiring a company every three to four weeks on an average. That sums up to 13 to 17 acquisitions per year. Which more than what’s being predicted, Apple has also been able to quietly make few purchases that no one caught wind of (Even when digital eyes are around monitoring your every move). While the public markets have been keeping it steady so far this year, 2015 has kind of a tough year for start-up valuations it seems. One must have probably heard all the talk about “unicorns” that has been making rounds and how some of them have fallen greatly. This also says if the company that was acquired or goes public (such as Square) which was given a lower valuation than its prior private valuation.
But, when it comes to Microsoft, shares have increased under Nadella as investors believe in his vision for the company, which so happens to be included under a lot of acquisitions.