Fools Rush In: 10 of the Worst Corporate M&A Flops

[vc_row type=“full_width_background“ full_screen_row_position=“middle“ bg_color=“#ffffff“ scene_position=“center“ text_color=“dark“ text_align=“left“ top_padding=“2%“ overlay_strength=“1″ shape_divider_position=“bottom“ bg_image_animation=“none“ shape_type=““][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“1/1″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][vc_row_inner column_margin=“default“ text_align=“left“][vc_column_inner column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_shadow=“none“ column_border_radius=“none“ column_link_target=“_self“ width=“1/2″ tablet_width_inherit=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][/vc_column_inner][vc_column_inner column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_shadow=“none“ column_border_radius=“none“ column_link_target=“_self“ width=“1/2″ tablet_width_inherit=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][nectar_gradient_text heading_tag=“h2″ color=“extra-color-gradient-2″ gradient_direction=“diagonal“ text=“If done wrong the damage can leave a heavy toll on the companies and at times they even go bankrupt“][/vc_column_inner][/vc_row_inner][vc_row_inner column_margin=“default“ text_align=“left“][vc_column_inner column_padding=“padding-3-percent“ column_padding_position=“top-bottom“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_shadow=“none“ column_border_radius=“none“ column_link_target=“_self“ width=“1/1″ tablet_width_inherit=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][vc_custom_heading text=“One of the most important strategies for companies to survive in this era“ font_container=“tag:h2|font_size:18|text_align:left|color:%23000000|line_height:2″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“ css_animation=“none“][vc_column_text css_animation=“none“ css=“.vc_custom_1552691481701{margin-top: 20px !important;margin-bottom: 5px !important;}“]Especially considering the rise in competition from other companies especially if they are on the brink of losing, they end up marrying their companies with associating companies and creating a hybrid. Hence mergers and acquisitions is a vital aspect in business.[/vc_column_text][vc_custom_heading text=“But if gone wrong the damage can leave a heavy toll“ font_container=“tag:h2|font_size:18|text_align:left|color:%23000000|line_height:6″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“][vc_column_text css=“.vc_custom_1552691527141{padding-right: 10% !important;}“]Listed here are 10 of the worst corporate mergers and acquisitions flops:[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row type=“full_width_background“ full_screen_row_position=“middle“ equal_height=“yes“ content_placement=“middle“ scene_position=“center“ text_color=“dark“ text_align=“left“ top_padding=“1%“ bottom_padding=“2%“ overlay_strength=“0.3″ shape_divider_position=“bottom“ bg_image_animation=“none“ shape_type=““][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“1/2″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“ offset=“vc_col-xs-12″][image_with_animation image_url=“14886″ alignment=““ animation=“Grow In“ border_radius=“none“ box_shadow=“medium_depth“ max_width=“100%“][/vc_column][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“1/12″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“ offset=“vc_col-xs-12″][/vc_column][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“5/12″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“ offset=“vc_col-xs-12″][vc_row_inner column_margin=“default“ text_align=“left“][vc_column_inner column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_shadow=“none“ column_border_radius=“none“ column_link_target=“_self“ width=“1/1″ tablet_width_inherit=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“ enable_animation=“true“ animation=“fade-in-from-bottom“][vc_custom_heading text=“And as the title suggests, ‘only fools rush in’, thus these companies faced such major losses.“ font_container=“tag:h3|text_align:left|color:rgba(0%2C0%2C0%2C0.75)“ use_theme_fonts=“yes“ css_animation=“none“][/vc_column_inner][/vc_row_inner][vc_row_inner column_margin=“default“ text_align=“left“][vc_column_inner column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_shadow=“none“ column_border_radius=“none“ column_link_target=“_self“ width=“1/1″ tablet_width_inherit=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“ enable_animation=“true“ animation=“fade-in-from-bottom“ delay=“50″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row type=“in_container“ full_screen_row_position=“middle“ scene_position=“center“ text_color=“dark“ text_align=“left“ overlay_strength=“0.3″ shape_divider_position=“bottom“ bg_image_animation=“none“][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“1/1″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][vc_custom_heading text=“1) Microsoft and Nokia“ font_container=“tag:h2|font_size:18|text_align:left|color:%23000000|line_height:4″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“][vc_column_text css=“.vc_custom_1552691622150{padding-right: 10% !important;}“]The Lumia phone line was the result of the marriage of the two major companies such as Nokia and Microsoft who were falling behind Apple and Android. But alas, even after purchasing Nokia for 7 billion dollars they still managed to bite the dust of Apple and Android platforms.[/vc_column_text][vc_custom_heading text=“2) Google and Nest:“ font_container=“tag:h3|font_size:16|text_align:left|color:%23000000|line_height:6″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“][vc_column_text css=“.vc_custom_1552691648306{padding-right: 10% !important;}“]Google was known to be good with software building but it had not excelled in hardware innovation, but once it merged with Nest a 3.2 billion dollar investment they were able to progress till alas, internal fighting and politics divorced them.[/vc_column_text][vc_custom_heading text=“3) Yahoo and Tumblr:“ font_container=“tag:h3|font_size:16|text_align:lef
t|color:%23000000|line_height:6″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“][vc_column_text css=“.vc_custom_1552691678281{padding-right: 10% !important;}“]One of the greatest losses in investment is the story behind the acquisition of Tumblr by Yahoo, causing a loss of 712 billion dollars, the CEO of yahoo had tried her best to make Tumblr become popular in order to ultimately boost the worth of Yahoo by increasing its viewers by 50%. But alas, when Tumblr failed to meet up with the expectations, they both parted ways.[/vc_column_text][vc_custom_heading text=“4) HP and Autonomy:“ font_container=“tag:h3|font_size:16|text_align:left|color:%23000000|line_height:6″ google_fonts=“font_family:Comfortaa%3A300%2Cregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal“][vc_column_text css=“.vc_custom_1552691722147{padding-right: 10% !important;}“]The CEO of HP Leo Apotheker acquisitioned Autonomy which was a European data analytics company, but during his time as a CEO he took many missteps leading to the loss of the company, hence he got fired as a result and the 11.1 billion dollar investment was left in vain as HP finally parted ways with Autonomy resulting in a 9 billion dollar loss for Autonomy.

  • Toshiba and Westinghouse:

Westinghouse is one of the largest manufacturers of Nuclear reactors in the world, so when during the mid-2000’s the Japanese company Toshiba decided that they would like to take part in the nuclear business, they invested heavily in this company. Toshiba obtained 77% of the nuclear power company for $4.2B, this was a decision that nearly caused the Japanese company to go bankrupt. Hence Toshiba wrote off a 6.3 million dollar loss and parted ways with Westinghouse selling it off to Brookfield Asset Management.

  • eBay and Skype:

EBay merged with Skype in order to make it easier for their buyers to be in contact with their sellers. But it was later found out that the buyers could do with email and were not in need of Skype in any way, hence this led to a great loss. Thus, eBay sold of 65% of Skype to a company Silver Lake later on.

  • HP and Compaq

HP and Compaq are both working in personal computer business. In 2001, they decided to merge their companies in order to face off against the Dell Company. But HP and Compaq’s core businesses overlapped, and one of the key reasons for the merger was that it would enable cost-cutting. But it was not able to do much about it hence once again they had failed to surpass their goal.

  • Novell and WordPerfect

With the birth of major processing programs such as Microsoft word and Google Docs, it’s not surprising that people have forgotten about Novell and WordPerfect. Novell bough WordPerfect in order to compete with Microsoft Word by producing Novell’s own comprehensive OS-and-utilities packages. But alas, like the previous cases they failed to cope up with the competition and alas Novell ended up selling WordPerfect to Corel for 115 million dollars.

  • Sony and Columbia Pictures:

In 1989, Sony purchased Columbia Pictures but as soon as Sony had recognized the fact that their cultures did not match with those of Colombia pictures, they allowed Columbia to work independently but this lead to a success for Colombia Pictures while Sony faced the loss, hence the deal flopped. Thus Sony soon afterwards paying its investment cut off the deal with Colombia Pictures.

  • Sears and Kmart:

Sears Holdings was the name given to the store born out of the merging of Sears and Kmart. The companies decided to come together as other businesses such as Walmart and Target began booming. But whatever the hopes were before the acquisition it didn’t matter as there was no great positive impact that had taken place on either brand so it was alas like all the others a major flop, with Sears losing 7 billion dollars of its investment.[/vc_column_text][vc_column_text css=“.vc_custom_1552691747665{padding-right: 10% !important;}“]Hence the most common reason why all of these major companies faced loss was due to rising competition. And as the title suggests, ‘only fools rush in’, thus these companies faced such major losses, which if they had invested elsewhere might have profited them more, but as they say:
“The Wise learn from history, whereas Fools learn from experience”.[/vc_column_text][/vc_column][/vc_row][vc_row type=“full_width_content“ full_screen_row_position=“middle“ scene_position=“center“ text_color=“dark“ text_align=“left“ top_padding=“3%“ bottom_padding=“3%“ overlay_strength=“0.3″ shape_divider_position=“bottom“ bg_image_animation=“none“ shape_type=““][vc_column column_padding=“no-extra-padding“ column_padding_position=“all“ background_color_opacity=“1″ background_hover_color_opacity=“1″ column_link_target=“_self“ column_shadow=“none“ column_border_radius=“none“ width=“1/1″ tablet_width_inherit=“default“ tablet_text_alignment=“default“ phone_text_alignment=“default“ column_border_width=“none“ column_border_style=“solid“ bg_image_animation=“none“][vc_column_text css=“.vc_custom_1552666163953{margin-top: 60px !important;margin-bottom: 60px !important;}“]

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