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The recent rate-driven valuation pressure among next-generation technology has created some ripe acquisition opportunities for cash-rich mega-cap technology. After a rapidly weakening investor sentiment, Peloton PTON is the latest acquisition target, with poor management decisions dragging its market value -80% below the highs it reached a year earlier.
Now, below $ 10 billion in market value, Peloton is getting views from Amazon AMZN and its growth-hungry new CEO, Andy Jassy, looking for its broad-based subscription offering in any way necessary. Nike NKE has also joined Amazon on the list of potential PTON providers to accelerate this shoemaker’s digital / subscription business evolution.
This leading exercise equipment / software company rose its shares by more than 20% in Monday’s session, but PTON still sits 5x below its $ 50 billion over-euphoric market capitalization last January.
Microsoft MSFT kicked off 2022’s M&A action with a $ 70 billion bid for Activision Blizzard ATVI. ATVI was down nearly -50% from its 52-week high in the wake of allegations of uncontrolled workplace misconduct, but its underlying growth prospects remained intact.
Profitable technology giant’s recent cash infusion of the digital acceleration of the pandemic has them looking for deals, and they’re finding themselves in high-growing unicorns where management is failing.
Global transactions reached a record $ 5.9 trillion in 2021, and with more than 60% of U.S. CEOs seemingly pursuing an acquisition (according to EY), 2022 M&A activity is probably just warming up.
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