Largest M&A and IPO Deals of 2022, and what’s coming in 2023
Microsoft’s Jan 2022 acquisition of Activision Blizzard at $95 per share in an all-cash transaction (which includes Activision Blizzard’s net cash) made it the 2nd biggest gaming company after Sony. Some of the largest and most iconic gaming properties such as Call of Duty, Candy Crush, Warcraft, and Diablo, now belong to Microsoft.
2️⃣ Broadcom and VMWare ($61 bn)
Broadcom acquired VMWare in a cash and stock deal in May 2022. A backlash to the deal ensued and Broadcom’s stock fell almost 20% the following month. The deal is set to close officially after mid-2023, giving investors time to consider potential exit strategies. Raghu Raghuram, CEO of VMWare, has stressed the benefits of the deal, which include greater synergy between VMWare’s software and Broadcom’s infrastructure.
3️⃣ Elon Musk and Twitter ($44 bn)
Unless you’ve been living under a rock, you know about this. The Tesla CEO took control of Twitter in late 2022 and predicted it would have 1 bn users by 2024 (it currently has 368 mn monthly active users). He’s aggressively pursuing user and revenue growth for 2023 and has announced a $4 bn stock buyback program.
4️⃣ Oracle and Cerner ($28.3 bn)
The 2nd largest software company, Oracle, plans to increase the digital capabilities of Cerner, integrate telecommunications, and revolutionize health care record processes to enhance the health care system.
5️⃣ Prologis and Duke Realty ($26 bn)
In an all-stock transaction, Prologis acquired Duke Realty, resulting in a large portfolio featuring logistical properties with 153 mn square feet of operating properties across ~18 US locations. The move also sees Prologis become the biggest logistics real estate operator in the world.
Though M&A deals slowed in 2022 (falling 37% from 2021) due to market volatility, companies adapted, thus providing a look at the possible 2023 deals landscape. Deal advisers are optimistic that this will be a better year, with top dealmakers at Goldman Sachs predicting global M&As will recover in the second half of 2023. This will be driven by large investors who now have plenty of cash available as well as companies with strong profits, who are waiting to diversify but are simply holding out for a slightly less volatile market.
Key Asia-specific points:
In Q3 2022, China gained 50% growth, with 377 M&A deals announced, and a combined transaction value of $36 bn, compared to Q2 2022 which saw 324 deals and a total transaction of $23 bn.
1. Citi (12 deals, $92,102 mn)
2. Goldman Sachs (18 deals, $82,545 mn)
3. JP Morgan (10 deals, $69,824 mn)
4. Credit Suisse (13 deals, $67,143 mn)
5. Morgan Stanley (12 deals, $62,942 mn)
Found this article helpful? Make sure to hit 👍 and follow if you'd like to see more such market insights!
--------------------------------------------
We help university students like you to get into Investment Banking, Banking, Property/ Conglomerate and Advisory/ Consulting.
Follow us on Instagram (ig: HKCareers / ibankcoaching) to know insider tips about grad job / internship hunting.
Visit https://bit.ly/hkcareersaboutus to know more about the result-based career coaching program
