1. Summary of Findings:
• Big tech acquisitions reached a five-year low amid the pandemic.
• Despite the drop in acquisitions, investments by big tech companies hit record levels in 2020, with a combined $12.4 billion in equity deals.
2. FAMGA Highlights & Market Drivers:
• Acquisitions: The annual number of acquisitions by Facebook, Apple, Microsoft, Google (Alphabet), and Amazon (FAMGA) trended down from 2016 to 2021.
• Investments: Conversely, investments by FAMGA trended up, with notable increases in annual investment counts from 2016 to 2021.
• Google and Amazon: Google led in unique investments, followed by Amazon. Google’s venture arm, GV, was the most active among FAMGA venture arms, focusing on health-related investments.
• Sector Focus: Investments were concentrated in AI, VR, cloud services, and sectors relevant to the work-from-home era, such as cloud and cybersecurity.
• Regional Focus: Big tech companies also made significant investments in India and mobility tech, backing companies like Cruise, Waymo, Zoox, and Rivian.
3. Acquisition Trends:
• Apple and Microsoft were the most active acquirers since the pandemic began, each making ten acquisitions.
• Key acquisition themes included emerging technologies, AI, VR, and cloud services.
• Notable acquisitions: Microsoft’s $7.5 billion purchase of ZeniMax Media and Google’s $2.1 billion acquisition of Fitbit.
4. Investment Trends:
• FAMGA Investments: Google led in unique investments since the start of the pandemic, followed by Amazon and Microsoft.
• Themes: Investments focused on new markets and tech adjacent to core offerings, such as mobility, biopharmaceuticals, financial services, renewable tech, cloud security, and healthcare.
• Regional Focus: Investments in India were significant, with companies like Facebook, Amazon, Microsoft, and Google backing Indian companies.
5. Key Investments and Acquisitions:
• Facebook: Diversified its acquisitions with companies like Scape Technologies and Mapillary to enhance its Facebook Marketplace and other services.
• Apple: Focused on AI, VR, and iPhone-related technologies, acquiring companies like Vilynx and Xnor.ai.
• Microsoft: Continued to build its enterprise technology stack with acquisitions like Softomotive and CyberX.
• Google: Focused on growing its cloud business with acquisitions like AppSheet and Actifio.
• Amazon: Extended its reach into new sectors and made significant acquisitions like Zoox for $1.3 billion to potentially offer autonomous ride-sharing or food delivery services.