5 Of The 'Scariest' Technology M&As
Before you put on your Halloween costume and head to the nearest monster mash, take a moment to peruse these terrifying mergers and acquisitions.
5. Sprint And Nextel
When Sprint Corporation (NYSE: S) merged with Nextel, the two companies had hoped to create the third-largest wireless carrier in the United States. They succeeded in that regard, but that's where the success ended and the failure began.
According to CNET, Nextel became a financial and operational drain that made it difficult for Sprint to turn a profit. Sprint eventually closed Nextel's network to save money and move past the failed merger.
4. eBay And Skype
Before Microsoft Corporation paid billions to acquire Skype, eBay Inc (NASDAQ: EBAY) took control of the company for $2.6 billion. The 2005 merger did not make much sense at the time and ultimately ended in disaster. After four years of problems, eBay sold Skype to private investors for $1.9 billion.
3. News Corp And MySpace
The acquisition fee seems even larger when considering that News Corp eventually sold MySpace for $35 million -- less than one-tenth the price it paid to acquire the firm. That is a small amount of money for a company that was once valued at $12 billion.
2. HP And Palm
Hewlett-Packard acquired Palm to take on Windows. That strategy failed. Palm's hyped webOS platform was not popular enough to persuade consumers who were more interested in products from Apple Inc. In 2013 (just three years after acquiring Palm), Hewlett-Packard sold webOS to LG.
1. AOL And Time Warner
Unfortunately, their time together was much less meaningful. When the two empires came joined forces, they formed a company that was valued at $350 billion. After several years of trying to justify that valuation, Time Warner spun out AOL as a separate entity.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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