Amid the growing dominance of technology giants, smaller companies such as Uber Technologies Inc. and Spotify Technology SA could try to strengthen their positions through mergers and acquisitions, and regulators are likely to be on their side, according to CB Insights.
Uber, a transportation service provider that was made public last year, can be combined with Airbnb Inc., a shared housing company that is considering an initial sale of shares, as they offer a “natural cross-selling potential,” He wrote the research firm in a report on technology trends for 2020.
Spotify, a music streaming service, could buy social media company Snap Inc. to fend off the growing competition from larger rivals such as Apple Inc., according to the report.
These are among a list of possible mergers and acquisitions that, according to CB Insights, could reach the market this year, as the influence of megacapitalized technologies continues to grow. To survive, many of the relatively smaller companies can seek alliances that increase their competitive power. And they are likely to get quick approvals from regulators, according to CB Insights. In fact, companies like Alphabet Inc. and Facebook Inc. face antitrust investigations.
“2020 will be the year that small and medium-sized fish swallow each other, in an attempt to gain an incremental scale advantage that they can digest”, wrote the signature in Thursday’s report. “It is likely that such agreements will be approved quickly by US and European regulators, who will smile at any combination that provides stronger counterweights.”
Another possible agreement that the report highlighted is a link between Atlassian Corp. and Slack Technologies Inc., a combination that CB Insights says will allow companies to “strengthen” to avoid being caught by “large technology companies or business software with cash in hand. “.
Other possible candidates for mergers and acquisitions are:
– eBay Inc.
– Twitter Inc.
– Lyft Inc.
– Pinterest Inc.
– Dropbox Inc.
– Box Inc.