5 Big Mergers We Could See Soon

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Just to stave off any confusion or complaints, the five potential mergers you’re about to see proposed are nothing more than ideas; they’re not even mere rumors.

mergers and acquisitionOn the flip side, most mergers weren’t on the radar a year before they become a reality.

Throw in the fact that the just-concluded first quarter was the busiest quarter on the merger and acquisition front since 2007, with more of the same expected for the foreseeable future (fueled by low borrowing rates) and it becomes clear — we as investors should never say a certain deal is simply off the table.

With that in mind, and in no particular order, here are five mergers we may see (or would at least like to see) materialize in 2016 as merger-mania continues to pick up steam.

5 Mergers We Could See Soon: Exxon Mobil Corporation (XOM) and Anadarko Petroleum Corporation (APC)

Anadarko, mergersThere’s been chatter of mergers within the energy sector for months now, largely as a means of survival in new era of weak oil prices. It was Royal Dutch Shell plc (NYSE:RDS.A) that may have started the proverbial avalanche of mergers, however, with its recent acquisition of BG Group plc (OTCMKTS:BRGYY).

As for who’s likely to pull the trigger next before all the pretty girls have already been asked to the dance, look for Exxon Mobil Corporation (NYSE:XOM) to make a move, and it may well be gunning for Anadarko Petroleum Corporation (NYSE:APC).

With a top line of $18 billion last year, it’s one of the few independents with enough size and scale to be of any real interest to Exxon Mobil. And, UBS recently named Anadarko Petroleum as one of the top takeover candidates in the industry.

5 Mergers We Could See Soon: Google Inc (GOOGL) and Twitter Inc (TWTR)

TWTR, mergersIt’s true that last week’s rumors of a deal between Twitter Inc. (NYSE:TWTR) Google Inc. (NASDAQ:GOOGL, NASDAQ:GOOG) have yet to become anything more than rumors.

But the fact that buzz continues to circulate suggests there’s more than just wishful thinking to it among Twitter investors.

The fact is, Google is still conspicuously missing a presence in the social networking space, and Twitter is the only asset in this space that could give any combination of companies a shot at contending with Facebook Inc (NASDAQ:FB).

5 Mergers We Could See Soon: Celgene Corporation (CELG) and Gilead Sciences, Inc. (GILD)

celgene stock, CELG stockGilead Sciences, Inc. (NASDAQ:GILD) is considered by some to be the king of successful biopharma mergers, and it’s not an undeserved accolade.

Staying true to its strategy, it’s next acquisition target could very easily be $93 billion rival Celgene Corporation (NASDAQ:CELG).

What Gilead or any other suitor would be getting with Celegene is ownership of hot cancer drugs Revlimid and Abraxane, just to name a couple, and a pipeline that’s far bigger than most investors give CELG credit for.

5 Mergers We Could See Soon: Microsoft Corporation (MSFT) and Tableau Software Inc (DATA)

Tableau Software, mergersOk, it’s not a “big” merger per se in the sense that most investors have probably never even heard of Tableau Software Inc (NYSE:DATA). But, in the sense that Microsoft Corporation (NASDAQ:MSFT) might be a suitor, it’s rather big news for the few folks who are familiar with DATA.

Though only a handful of investors may know Tableau Software well, those who do know it will also likely know the company is adamant about doing its own thing. As CFO Tom Walker explained a couple of months ago, “We like to keep our destiny in our own hands.”

So why is an acquisition by Microsoft a possibility worth considering now? First and foremost, things can change when enough money is on the table. And — though not by design — there are a lot of parallels between the two companies that could easily create immediate synergies.

Specifically, Tableau Software makes a point of making sure its system works well with a varsity of technologies, including IBM’s DB2, Oracle’s framework, and yes, even Microsoft’s SQL server platform. Similarly, Microsoft CEO Satya Nadella is looking to cross technology lines that the old Microsoft would have never crossed, including working with rival Oracle on a cloud-based database product.

In other words, Microsoft, like Tableau, has done well by keeping its customer-centric options open. The two could be a great fit.

5 Mergers We Could See Soon: Apple Inc. (AAPL) and Netflix, Inc. (NFLX)

nflx netflix stockIt’s audacious to be sure, and would have been laughed at a year ago. But the notion of Apple Inc. (NASDAQ:AAPL) buying Netflix, Inc. (NASDAQ:NFLX) now isn’t nearly as crazy at is may seem on the surface.

Indeed, the potential synergy between the two outfits is almost too compelling to pass up.

Netflix still has the top name in the VOD arena, and has proven there’s still a buck to be made in the business if enough scale can be achieved. Apple, on the flipside, has enormous reach by virtue of hundreds of millions of its devices currently in consumers’ hands, and the company has recently raised the bar on its goal of delivering cable television programming.

Bringing Netflix into the fold would simply be a way to add another channel to its cable-programming selection, and would give Netflix another outlet — probably a big one — for its services.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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