Mergers and Acquisitions (M&A) are a big business.
In 2021, M&A activity hit new highs. Globally, more than 62,000 deals were struck, up 24% from 2020. In total, publicly disclosed deal values exceeded $5 trillion.
Will 2022 break this record?
While it’s still too early to say, investors are speculating about which high-profile companies are prime acquisition targets.
Here are five publicly listed companies that could be subject to M&A deals in 2022.
In 2020 and 2021, Peloton exercise bikes and treadmills were selling like hotcakes. At the height of the frenzy, Peloton’s market cap reached a whopping $47.5 billion.
Unfortunately for Peloton, the easing of COVID-related restrictions saw the stock price crash. The tech firm’s valuation currently stands at less than $8 billion, an 80% decline.
While investors are feeling the pain, some of the world’s largest companies are considering acquiring Peloton to capitalise on its extensive database and brand recognition. Reports suggest that both Amazon and Nike are pondering the possibility of acquiring the beaten-down company.
Roku is another high-profile stock whose price has plummeted recently.
With digital streaming gaining ground, competition for eyeballs is fierce. Once touted as the future of streaming, the continued dominance of Netflix combined with the emergence of Disney+, Amazon Prime, and Apple TV as standalone offerings is hurting Roku’s ability to gain market share.
However, this means that one of the aforementioned players may pounce and buy Roku while its valuation is still low.
Marvell Technology Group produces semiconductors, one of the information age’s most valuable commodities. With a market capitalisation exceeding $56 billion, the idea of Marvell getting acquired seems farfetched.
However, nobody expected Microsoft to purchase Activision-Blizzard, a video game producer valued at more than $60 billion. Could Taiwan Semiconductor Manufacturing Company, the world’s number one semiconductor manufacturer valued at $540 billion, eye up Marvell to enhance its dominance?
In this day and age, anything is possible.
CRISPR is one of the world’s leading gene-editing companies. This biotechnology company specialises in developing transformative gene-based medicine that can treat some of the most severe diseases.
The COVID-19 pandemic has generated considerable investor interest in the healthcare sector. Thus, it is possible that one of the leading companies would consider snapping up CRISPR to beef up its biotechnology portfolio.
Pinterest was one of the 2020s hottest stock picks. From 2020-2021, the price surged from $12 to $85, a 600% increase.
Unfortunately, 2022 is not the stock’s best year. It is currently trading for $25, a steep 70% discount from its all-time high.
But this may not deter potential suitors.
It’s no secret that Microsoft is always eager to acquire firms that will expand its reach and diversify its activities. Indeed, the tech behemoth has been rumoured to be interested in acquiring Pinterest, and the current valuation could provide the perfect opportunity to buy the high-growth company of it at a fair price.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.