Meta Platforms, Inc., often seen merely as Facebook, has strategically expanded its empire through significant acquisitions that have played a crucial role in its growth. Key purchases include Instagram for $1 billion in 2012, anticipated to generate over half of Meta's revenue by 2025, and WhatsApp for $19 billion in 2014, focusing on global scale. These acquisitions have enabled Meta to build competitive advantages while positioning it against rivals, demonstrating the potential value and impact of strategic acquisitions in the tech industry.
Investors tend to be skeptical about acquisitions - but they aren't all bad, as Meta has shown... When done right, they have a purpose.
Fast forward to 2025 and Instagram's share of Meta's revenue could exceed 50% in 2025... Instagram alone is worth $500 billion.
$19 billion sounded insane at the time... Meta wasn't buying WhatsApp for its revenues - it was buying scale, reach and relevance in every corner of the globe.
They help expand, create moats, and in some cases, cripple the competition... identifying such competitive advantages from acquisitions is one lens we apply.
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