The black holes of technology market

The Black holes of Technology market

Our universe comprises of black holes which can consume anything and everything, even light and sound cannot escape from them. All other celestial bodies cannot stand the enormous power of these dark spaces. 

Similarly, the world of technology has its own black holes, which from time to time grab control of other smaller tech firms. Some of these tech giants which are buying up new firms are, Facebook-the largest social network, Google-the search engine and the driving force of smartphone operating systems, Apple, the innovator of new mobile phone computing, etc.

Facebook, till now has acquired 45 companies, and the latest in its addition is the famous mobile messaging application Whatsapp, which it grabbed with a whopping price tag of $19 billion dollars. Some other famous firms in its basket are; Instagram- the remarkable photo sharing application which was bought by the social network in 2010 by paying $1 billion. Onavo, Spool, Snaptu, Hot potato are some other well-known tech firms which belongs to Facebook.

Facebook owner Mark Zuckerberg acknowledges that it is not possible nowadays to limit the users to a single app for a longer duration. In an interview with Bloomberg BusinessWeek, he said, “we just think that there are all these different ways people want to share, and that compressing them all into a single blue app is not the right format.

The other two companies which are in the race of buying new tech firms are Google and Apple. Apple has acquired over 53 companies, and its largest acquisition was the purchase of NeXT for a price tag of $400 million in 2012. Google with 100 purchases is the master in the race of grabbing small firms and its largest acquisition was the purchase of $12 billion Motorola Mobility in the same year, 2012.

No matter how overpriced these acquisitions sounds to the users of the applications made by these tech firms, the purchases of smaller firms have become a necessity for the tech giants to stay in the world of technology.