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The 25 Best (and Worst) Mergers and Acquisitions of All Time

Updated: Jul 15, 2023By Esther WalkerBusiness
This article originally appeared on Investing.com. It has been republished here with permission.
©REUTERS/Dado Ruvic/Illustration/Alamy ©REUTERS/Dado Ruvic/Illustration/Alamy

When two companies negotiate a merger or acquisition agreement, the result can be impressively good or downright bad. Deals worth jaw-dropping figures in the millions or even billions often dominate news headlines. Mergers and acquisitions are an important part of business – leading to greater financial strength for both companies involved. Greater economic power can create a reduced competitive threat, higher market share, and increased profits. 

However, these ventures are not always successful – failure can be caused by issues like cultural integration, geopolitical issues, executives being fired, or bankruptcy. Mergers and acquisitions are extremely risky, without the proper strategy and knowledge they can cost companies billions making them memorable for all the wrong reasons. When it comes to M&A’s, some are so significant that we can’t remember a time when the companies were separate: Where would Disney be without Pixar? Here we look at the best, and worst, mergers of all time: The good, the bad, and the ugly.

1. AT&T and Time Warner

Date: 2018
Price: $85 billion
Status: Success

In 2016 the world’s largest telecommunications company, AT&T, announced they were going to merge with the content producer Time Warner. This acquisition took two years to complete as both companies were sued by the U.S. Justice Department which wanted to block the deal.  

©Pool/Getty Images ©Pool/Getty Images

The merger was part of a larger shift within the media landscape, which has seen people switch away from their TVs in favor of video streaming services such as Netflix and Disney+. AT&T launched the streaming service HBO Max to compete with the aforementioned services. Despite being a successful merger, nearly three years later AT&T relinquished its ownership of Time Warner (and HBO Max) for $43 billion (almost half of what AT&T bought it for).

2. Heinz and Kraft

Date: 2015
Price: $100 billion
Status: Success

The food giants Heinz Foods and Kraft, are most well known for making ketchup and macaroni and cheese respectively, completed a mega-merger in 2015. Warren Buffet’s Berkshire Hathaway and 3G Capital invested $10 billion in the new Kraft Heinz Company ensuring its good fate.

©rustycanuck/Shutterstock.com ©rustycanuck/Shutterstock.com

The deal was completed and has become the fifth-largest food and beverage company in the world and the third-largest in North America under the name The Kraft Heinz Company. This secured the merger as one of the most successful ever.

3. Disney and Pixar

Date: 2006
Price: $7.4 billion
Status: Success

In 1923 the legendary Walt Disney and his brother Roy founded the Walt Disney Company. Disney is one of the largest media and entertainment companies in the world.  However, in the early 2000s, the company recognized the popularity of 3D films which could have led to the company struggling to compete with competitors like DWA and Pixar. 

©Willrow Hood/Shutterstock.com ©Willrow Hood/Shutterstock.com

Disney decided to embrace the new animation culture by merging with 3D industry leader Pixar. Pixar not only developed new movies such as Wall-E and Up but also created sequels for original movies like Toy Story. This merger of Disney and Pixar was a match made in cartoon heaven.

4. Mattel and The Learning Company

Date: 1999
Price: $3.8 billion
Status: Failed

Mattel, the creator of Barbie and other children’s toys, attempted to expand into the educational software market by acquiring The Learning Company (which was almost bankrupt) for $3.8 billion. TLC was known for its educational ‘learning is fun’ games and titles such as Reader Rabbit and The Oregon Trail and games like the Prince of Persia.

©Ekaterina_Minaeva/Shutterstock.com ©Ekaterina_Minaeva/Shutterstock.com

This deal ended up being one of the worst acquisitions of all time – The Learning Company lost $206 million within the first year of purchase. Mattel was forced to lay off ten percent of its employees and its stock price plummeted. TLC was sold by the end of 2000.

5. Exxon and Mobil

Date: 1999
Price: $75.3 billion
Status: Success

Big oil got even bigger when the oil industry reunited the major disintegrated divisions of the Standard Oil Company. In 1999 Exxon and Mobil signed an agreement to merge worth $81 billion. This was a marriage of the top two U.S. oil companies and was met with opposition but the agreement was made and signed that year.

©Red Herring/Shutterstock.com ©Red Herring/Shutterstock.com

The merger transformed the oil industry and the merged ExxonMobil became the third largest company in the world at the time and still remains in a prominent position today.

6. JP Morgan Chase and Bank One

Date: 2004 
Price: $58 billion
Status: Success

JP Morgan Chase & Co., the leading global financial services firm, holds trillions of dollars of assets and operates globally. The firm’s decision to acquire the Chicago-based Bank One was a decision that would further extend J.P. Morgan’s range in the Midwest and Southwest of North America.

©lentamart/Shutterstock.com ©lentamart/Shutterstock.com

This tactical agreement also lessened JP Morgan’s dependence on investment banking and trading and diversified its offerings. The acquisition of Bank One has transformed JP Morgan into a nationwide retail powerhouse and is still one of the top largest banks in America today.

7. Sears and Kmart

Date: 2005
Price: $11 billion 
Status: Failed

In 2005 hedge-fund investor Eddie Lampert made a purchase that intended to give two struggling retailers a chance by combining their strengths. This was the failed merger of Sears and Kmart costing a hefty $11 billion and creating Sears Holdings Corporation. At the time the company was America’s third-largest retailer. 

©New Africa/stock.adobe.com ©New Africa/stock.adobe.com

However, the death of retail and brick-and-mortar stores combined with the 2008 recession meant that the value of Sears’ stock was wiped stock by over 80% and it has not recovered since. In 2018, Sears Holdings filed for Chapter 11 bankruptcy and was forced to close hundreds of stores and fire thousands of employees – the Sears–Kmart merger was clearly a major failure.

8. Facebook and WhatsApp

Date: 2019
Price: $22 billion
Status: Success

In 2019, following Mark Zuckerberg’s extremely successful acquisition of Instagram, the business magnate set his sights on WhatsApp. The globally used free text messaging application has more than 600 million active users. It is an alternative to traditional text messaging and was bought by Zuckerberg for $22 billion turning Whatsapp founders Jan Koum and Brian Acton into billionaires.

©MMollaretti/stock.adobe.com ©MMollaretti/stock.adobe.com

Zuckerberg recognized the potential of WhatsApp as playing a crucial role in Meta’s future growth in reaching billions of people across the globe. The massive acquisition became one of the largest tech buys ever seen in Silicon Valley.

9. Amazon and WholeFoods

Date: 2017
Price: $13.7 billion
Status: Success

In 2017 the health food grocery chain Whole Foods was struggling to compete with competitors, like Safeway and Kroger, who offered the same organic and specialty products at better prices. Amazon founder Jeff Bezos saw an opportunity to dominate the grocery industry and announced Amazon’s biggest acquisition to date – acquiring Whole Foods.

@Amazon/Twitter.com @Amazon/Twitter.com

This acquisition gave Amazon the brick-and-mortar platform needed to reduce costs for internet retailers (i.e. opening lockers for Amazon deliveries in certain Whole Foods stores). For Amazon, it was an opportunity to gather more data on how the same person shops online and offline and to scale up its grocery business. The $13.7 billion deal was a success and has allowed both companies to grow and develop their capabilities. 

10. Google and Android

Date: 2005
Price: Undisclosed (est. $50 million)*
Status: Success 

In the early 2000s Android was a relatively unknown small start-up company. In 2005 Google decided to acquire Android for an estimated $50 million (the exact figure hasn’t been disclosed) – a fraction of the $1.65 billion Google spent buying YouTube a year later.

©rafapress/stock.adobe.com ©rafapress/stock.adobe.com

Android has been Google’s most successful acquisition ever and has given Google the mobile operating system (OS) allowing it to compete with competitors Apple and Microsoft in the mobile phone market and expand their reach way beyond desktops. Android is currently the most popular mobile OS in the world and Google is one of the biggest and most influential companies around the globe.

11. AT&T and BellSouth

Date: 2006
Price: $86 billion
Status: Success

AT&T, the largest telecommunications company in the U.S., announced a merger agreement in March 2006 with BellSouth Corporation. The agreement reunited the fractured Ma Bell monopoly that antitrust regulators had broken up in 1984.  The merger gave total control of the largest national cellular carrier in the U.S., Cingular Wireless, to San Antonio-based AT&T which gave the firm even more dominance in the wireless arena.

Public Domain/Wikimedia Commons Public Domain/Wikimedia Commons

The merger gave AT&T the capability to expand its coverage into rural regions of the U.S. and create bundled services of television and internet connections and mobile services to customers. The deal created North America’s biggest provider of phone, wireless, and broadband services. 

12. New York Central and Pennsylvania Railroads

Date: 1968
Price: Unknown
Status: Failed

In 1968 the New York Central and the Pennsylvania Railroads merged to create Penn Central – the sixth latest corporation in North America (at the time). This merger was an unlikely marriage between competitors as an attempt to face the unrelenting competition from trucks, airlines, and Interstate highways. 

Public Domain/Wikimedia Commons Public Domain/Wikimedia Commons

The merger seemed promising on paper as a way to reduce costs and stay in business. Nonetheless, Penn Central was unable to keep up with rising costs and the dysfunctionality of amalgamating the two companies. Penn Central filed for bankruptcy protection in 1970. Sometimes, rivals just can’t get along.

13. Yahoo and Tumblr

Date: 2013
Price: $1.1 billion
Status: Failure

Tumblr, the microblogging and social network website was a trendy platform in the early 2010s and was one of the most successful user-generated content sites in the world. At the time YHOO was losing online traffic traction to competitors like Google and META and saw an opportunity to increase Yahoo page views. Yahoo acquired Tumblr for a hefty $1.1 billion cash in 2013.

©Rafael Henrique/stock.adobe.com ©Rafael Henrique/stock.adobe.com

The then-Yahoo CEO estimated that the acquisition would help grow Yahoo’s audience by 50% and provide the company with a profitable revenue source. However, culture clash and a lack of investment in the new venture led to Tumblr’s quick decline. The acquisition was a failure and Yahoo (and Tumblr) were acquired by Verizon in 2017. In 2019 Tumblr was bought by Automattic for a bargain price of $3 million.

14. Sprint and Nextel

Date: 2005 
Price: $35 billion
Status: Failure

A major merger occurred in 2005 between giant communication companies, Sprint and Nextel. The cellular carrier merger created the largest independent local phone company in North America with 40 million users in an attempt to fight off rivals Cingular Wireless and Verizon Wireless.

©Ascannio/stock.adobe.com ©Ascannio/stock.adobe.com

This merger was an unhappy marriage and many executives left the company. This factor combined with the worsening economy and competition from AT&T and Apple meant that stock prices plunged. Sprint and Nextel began to lose subscribers and the carrier lost revenue. The jaw-dropping $35 billion corporate merger was a rocky marriage and clearly failed.