Social Media Deals Decline but Technology Deals Rule

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Social media networks have made it to the news a lot in the past few months; Twitter’s IPO, Facebook and Instagram, Snapchat. Talk about these social platforms has been all over the newsfeeds.  So are all these discussions actually useful? Can these deals result in greater competition or will the companies be eventually wiped out?

A merger and acquisition industry professional has his hopes high with regards to the future of the M&A industry. According to him, the technology sector is advancing and the advancements are powerful enough to do plenty of good. In an interview with the press, he stated that there will be more services like Snapchat in the future, and the current one might become obsolete.

According to him, the system is sort of rigged and deal evaluations that are related to social media are not that meaningful. Consider the banking sector and the evaluations can tell you a lot, but for the social media sector, they are not even needed. The representative added that today we praise social networks like Facebook, and Twitter but in the future, all these will be features in every product out there.

The merger and acquisition professional highlighted that a key technology that will have a significant effect on M&A activity are tablet computers. The prices may have dropped since these were first launched, but Apple’s iPad is still expensive and Samsung is not that far behind with average rates being around $800. As such, other companies that are creating similar devices at only a fraction of the costs must be brought into the picture. He even suggested a name of a company that sells tablets for $60. Since this company sells cheaper devices, any of the bigger names in the industry can try to acquire it. Doing so will help the company dominate the tablet market.

Companies that manufacture technological devices will have a greater future… if they have enough funds. Technology prices are declining, and the smaller companies can be expected to be wiped out.  On the other hand, the bigger names like Google will dominate the M&A industry because they have the money to acquire companies and invest in new technology. As for social media companies, they might not experience great times ahead.

Let us wait and see if social media is going to take a fall and if other bigger enterprises are going to rise.

Source: www.forbes.com

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