3 Huge Mergers That Could Happen in 2018

There’s no question about it: 2017 will go down in stock trading history as a hugely successful year. With over 60 daily all-time highs throughout the year, and the S&P 500 closing higher every month for the first time ever, the headlines practically write themselves, and continue to do so. The world is still reeling from Disney acquiring rights to 21st Century Fox, and Amazon bringing Whole Foods into their fold, to name a few.


What will be the biggest mergers of 2018? To be decided. But here are three huge deals that might come to fruition:


Apple Acquiring Netflix

The last big deal Apple was back in 2014, when they acquired Beats for $3 billion. That was four years ago, and they’ve had dozens of opportunities to make another power move like that since. And yet, they’ve stuck with smaller purchases, like Shazam, for $400 million just earlier this year, or they’ve invested in themselves rather than find something out of house. Apple Music, for instance, is promised to receive $1 billion to build out original video content, the first of their in-house produced programs airing soon.


But with the recent tax reform bill, which offers a “one-time allowance for companies to repatriate overseas cash,” according to NASDAQ, could be the impetus Apple needs to make their next big move. A major media acquisition like Netflix makes sense for the tech giant, but only time will tell if that’s the direction they intend to follow.


Amazon Acquiring Target

It’s common knowledge now that Amazon already bought out Whole Foods for a whopping $13.7 billion just last year, so can they even afford another traditional retailer purchase like Target? Good question. The move makes sense, considering Amazon and Target share a demographic in terms of customers, and also possess similar range of how broadly they can reach their client base. It could be a potentially smart move for both companies, especially with the ongoing battle with Walmart for business.


It’s all a matter of timing, Loup Venture co-founder Gene Munster mentioned in his report, but “the value is there,” and could turn out to be quite the power move for the internet company and its conquests.


Time Warner and Comcast Acquiring Hulu

Currently co-owned by Fox, Disney, Comcast, and Time Warner, the streaming platform offers a wide variety of programs and therefore possesses a unique value to the companies who have a share in it. Currently, Disney owns the rights to the majority of Hulu’s content since acquiring Fox’s 30% stake, which bumped them up to a majority 60%, and it’s unlikely that they’re going to want to relinquish their hold. However, the complicated regulatory approval process is, well, complicated, and Hulu has the potential to become a bargaining chip if Time Warner and Comcast want to be serious contenders for the top streaming services of the future.

Leave a Reply

Your email address will not be published. Required fields are marked *