A Guide to Internet M&A
Internet M&A, or mergers and acquisitions, refers to the process of one internet-based company acquiring another internet-based company. With the internet being an integral part of our everyday lives, this type of corporate restructuring has become more common in recent years. If you’re interested in investing in technology companies or work in the technology industry, understanding the basics of Internet M&A is essential.
Internet M&A is frequently motivated by a company’s need to gain a competitive advantage by acquiring another company’s technology, intellectual property, or customer base. For instance, a social media platform may acquire a photo-sharing app to increase its user base, while a search engine may acquire a mapping app to improve its services. Internet M&A can also be driven by a desire to diversify a company’s portfolio or enter a new market.
There are several forms of Internet M&A, including asset acquisitions, stock acquisitions, and mergers. In an asset acquisition, a company buys specific assets, such as technology or patents, from another company. In a stock acquisition, a company purchases a controlling interest in another company by buying its outstanding shares of stock. A merger occurs when two companies come together to create a new entity.
Although M&A activity is prevalent in various sectors, it is particularly common in the tech industry, which includes internet-based firms. Over the years, internet M&A activity has increased, with many prominent deals making headlines.
In recent years, the Cheval M&A deal has been one of the most notable internet M&A deals. Cheval Capital, an investment bank based in Virginia, brokered the sale of a sizable IPv4 block to an undisclosed buyer, which fetched over $40 million, making it one of the most significant internet M&A transactions. Hillary Stiff, the President of Cheval Capital, oversaw the Cheval M&A transaction. Stiff is a well-known name in the tech industry, particularly in the area of internet M&A. Throughout her career, she has worked on numerous notable deals, making her one of the most in-demand experts in the field.
One area of internet-related business that is particularly active in the M&A space is hosting. Hosting M&A involves offering server space and related services that enable websites and other digital content to be accessible via the internet. Because hosting services are in high demand and the industry is highly competitive, Hosting M&A companies often pursue acquisitions in order to increase their market share.
A shortage of available IPv4 blocks is another factor driving internet M&A. IPv4 is the fourth iteration of the internet protocol and is used to assign unique identifiers to devices on the internet. Due to the explosive growth of the internet, the number of available IPv4 blocks is running out, leading to a scarcity that drives up the value of existing blocks and incentivizes companies to acquire them through M&A.
In summary, Internet M&A is a multifaceted and ever-changing sector of business that is influenced by various factors, such as the desire to increase market share, the shortage of IPv4 blocks, and the necessity of complying with regulations and safeguarding intellectual property. It is essential for entrepreneurs, investors, and other individuals interested in the technology industry to grasp these factors in order to make knowledgeable decisions about their investments and strategies.