5 Points To Note From Facebook’s AcquisitionsBy Toby Tunwase April 22, 2021
Mark Zuckerberg and Facebook are on a roll. Forbes tells us Zuckerberg is the 7th richest man while the company he co-founded is the 6th most valuable company globally. Facebook started out as a social media website to connect Harvard students in 2004. Now, the network boasts of 2 billion visitors daily and an estimated value of $580 billion.
The amazing thing about the Silicon Valley company is that it is not putting all its eggs in one basket. Facebook has acquired over 80 companies in the past ten years. Asides WhatsApp, Instagram, and Oculus as its famous acquisitions, Facebook is racking up other companies. The big question is, what can we learn from Facebook’s acquisitions? Here are five points.
- Acquisitions should not distract from the buying company’s vision. Facebook did not ignore its strategy and core operation, even with the many company purchases.
- Change is inevitable. No matter how successful or valuable a company is, it is not immune to change, positive or negative. While Facebook experienced positive change through an increase in value, the firms acquired also faced change.
- Firm culture is important in acquisitions. Facebook understood the role of corporate culture in their acquisitions. So, their acquisitions focused on maintaining the culture of social media innovation.
- You can’t get all you want. Facebook did not get all the companies it wished to acquire. At least not Snapchat.
- Acquisitions do not always swallow up the bought company. Facebook teaches us that buying companies do not necessarily overthrow existing structures in the company they acquire.