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Big Tech to shop for Covid-hit competitors in next 5 years: Report

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Companies across multiple industries including the Big Tech will go shopping for competitors over the next five years as extended lockdowns amid Covid-19 and other pandemic-related dislocations have squeezed the profit margins of many businesses globally, leading to record levels of corporate defaults, a new report said on Monday.

The economic shock is poised to result in a wave of mergers and acquisitions (M&A) as stronger companies acquire weakened rivals, technologies, and assets at bargain prices, said the report titled ‘The great shakeout’ by leading global management consulting firm Kearney.

“Over the next five years, the influence and size of companies and industries already wielding sizable market share are likely to grow as struggling competitors are eliminated during this great shakeout”.

In the meantime, with more than $1.5 trillion in capital and a sea of financially weakened targets made available as a result of Covid-19, private equity groups have deployed their record levels of dry powder in the months following the pandemic, making more than 5,500 deals in the first nine months of 2020.

Stronger companies in sectors benefiting from the pandemic — such as grocers, e-commerce and digital companies — are likely to seek growth and additional capabilities by acquiring rivals or new technologies to improve business efficiency.

Between January and May 2020, tech giants such as Alphabet, Amazon, Apple, Facebook and Microsoft announced their highest number of acquisitions since 2016 — a total of 19.

“In the third quarter of 2020, both big technology companies and other players continued technology deals, with transactions surging to more than $200 billion — levels not seen in two decades,” the report noted.

Such acquisitions are enabling companies to position themselves in areas likely to grow during and after Covid-19, such as automation, fintech, digital services, and food delivery.

The activity is further spurred by both the availability of attractive valuations and rising fears of tighter M&A regulations.

For example, Facebook spent $5.7 billion on a 9.99 percent stake in India’s digital platform Jio, Microsoft acquired IoT and cybersecurity company CyberX, and European food delivery platform Just Eat Takeaway agreed to acquire the United States’ GrubHub for $7.3 billion.

“Indeed, tech start-ups that are unable to compete with the giants will become more vulnerable to acquisitions as the latter seek to minimize competition, improve capabilities, and boost revenue streams,” the report mentioned.

Obstacles to Covid-induced M&A activity are also starting to materialize, said the report, driven by a mix of protectionism and anti-monopoly sentiment.

In October, a congressional investigation into big tech companies recommended breaking up giants and stronger antitrust laws, just before the US Department of Justice filed an antitrust lawsuit against Google.

“Regulatory scrutiny is intensifying elsewhere as well, with antitrust probes against tech giants, including Facebook, Apple, and Amazon underway in the EU, Australia, Brazil, and Canada,” according to the Kearney report.

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Apple is giving a huge discount on its gadgets: Details inside

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If you want to buy an iPhone and were waiting for a nice offer, then we have a piece of good news for you! Amazon Summer Sale May 2022 has begun and they are offering major discounts on various smartphones, laptops, and smart TVs, among others.

The sale is live now on the e-commerce platform with no-cost EMI options and exchange discounts on various products. In addition to this, Amazon has also partnered with several banks including ICICI, Kotak Bank, and RBL so that customers get instant discounts of up to 10% using their cards and EMI transactions.

Customers can easily enjoy this summer sale and get massive discounts on iPhones. They can also compare prices on Flipkart Big Saving Days Sale 2022 before making a purchase.

 

Amazon Summer Sale May 2022: Discount offer on iPhone 13 

Apple’s coveted phone model iPhone 13 in the 128 GB storage model will be available during the Amazon Summer Sale May 2022 for Rs 64,900. The MRP of the phone is Rs 79,900. This means that the customers will be able to enjoy a discount of up to Rs 15,000 on the purchase of the iPhone 13.

If you have an old iPhone in working condition then you will also be eligible to receive another additional discount worth up to Rs 17,000 on the iPhone 13.

Buy at Rs. 64,900 (MRP – Rs. 79,900)

Features of Apple iPhone 13 

The iPhone is powered by an A15 Bionic processor with 6 core CPU. Apart from this, it has 16 core neural engines. With the iPhone 13, up to 512 GB of storage will be available. The iPhone 13 has a 6.1-inch Retina XDR display with 1000 nits brightness.

The iPhone 13 has a 12-megapixel dual rear camera setup. This time a new wide-angle camera has been given, whose aperture is f/1.6. With this, there is support for sensor optical stabilisation. Night mode has been made better than before. The second lens is also 12 megapixels ultra-wide and has an aperture of f/2.4.

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