Mergers and acquisitions happen all the time. It is a financial construction that businesses use in order to grow. This can be because they want to take over a larger part of the market, because they want to save money on certain materials and production processes, or because they want to expand their reach. Therefore, professional merger and acquisition services are in high demand. That being said, it is much easier to find an example of failed mergers or acquisitions than of successful ones. However, it is because of some of the tremendous success stories that they continue to happen. Everybody who engages in a merger and acquisition (M&A) does so because they hope they will be the next success story. So what are some of the most successful M&As?
Sirius and XM Radio
The M&A between Sirius & XM radio happened in July of 2008. In those days, the two companies, both satellite radio stations, were each other’s rival. They officially announced that they were going to merge in 2007, but there was a significant issue that stopped it from going ahead. This issue was the fact that the FCC only granted two licensed to satellite radio in 1977, and these licenses came with a condition: that neither of the two radio stations would ever take over control of the other one.
So, all the paperwork had been filed by both Sirius and XM with the FCC, and this enabled them to conduct a full investigation of the merger. This investigation, which eventually led to the approval, took a lot longer than they had initially intended. The rest, as they say, is history and, today, 70% of new vehicles have SiriusXM, the name of the merged company, preinstalled in it. This installation comes with a three month free trial. The revenue and income of SiriusXM continues to grow year on year.
Exxon & Mobil
Do you remember a time when ExxonMobil wasn’t ExxonMobil? Most people can’t, but in fact they were two separate companies up to 1999. The merger of these two companies, which came with an $81 million agreement, led to big oil becoming even bigger. Interestingly, this was a merger of two parts that were previously joined, something that few people known. Exxon was started as the Standard Oil Company of New Jersey, and Mobil was started as the Standard Oil Company of New York. Both were companies started by John D. Rockefeller.
The Exxon Mobil merger was one of the biggest in history. So big, in fact, that the FTC had to demand a full restricting of the various gas stations previously owned by either Exxon or Mobil. This was so that there wouldn’t be an outright monopolization, which is not allowed under trading rules. Despite this, however, the FTC unanimously approved the merger of the two companies.
Today, ExxonMobil is the strongest and biggest oil market leader. They have a massive hold on the international oil market and their earnings are sky high. This is probably the most successful M&A ever.