The year 2023 unfolded transformative shifts and mergers in billion-dollar deals. From UBS's acquisition of Credit Suisse to the UFC-WWE's alliance and the BBC's chairman scandal, here is a list of the biggest corporate acquisitions, transformations, and resignations that will have ripple effects into the coming years.
UBS completes acquisition of Credit Suisse
On June 12, 2023, UBS successfully concluded its acquisition of Credit Suisse, marking a significant development in the banking sector. The merger saw Credit Suisse Group AG integrated into UBS Group AG, forming a consolidated banking entity. The acquisition, initiated on March 19, was valued at 3 billion Swiss francs ($3.25 billion). It was strategically orchestrated by Swiss authorities to prevent a banking sector crisis. Credit Suisse shareholders were allocated 1 UBS share for every 22.48 Credit Suisse shares held. The last trading day of Credit Suisse Group AG shares on the SIX Swiss Exchange was on June 12, and Credit Suisse Group AG ADS ceased trading on the New York Stock Exchange.
Photo: Bloomberg
Hindenburg Research's report on Adani Group
Hindenburg Research, known for scrutinising high-profile figures and companies, released a report on January 24, targeting the Adani Group. The report accused Adani Group of corporate misconduct and stock price manipulation, leading to a market capitalisation decrease of $105 billion (-45 per cent). Adani stocks experienced a relief rally after the Supreme Court stated that investigations could not be initiated solely based on media reports. In the same year, Hindenburg reports also implicated Block, a mobile payments company led by Jack Dorsey, in facilitating fraud against consumers and the government, as well as misleading investors with inflated numbers. Other companies scrutinised by the group include Icahn Enterprises, Freedom Holding, and Tingo (Nigeria), all experiencing market capitalisation declines ranging from 8-55 per cent after the publication of the reports.
Japan Industrial Partners Inc acquires Toshiba Corporation for $14 billion
On March 23, Toshiba's board approved a buyout proposal amounting to 2 trillion yen ($14 billion) led by Japan Industrial Partners (JIP), which also includes financial services firm Orix, utility Chubu Electric Power and chipmaker Rohm. The acquisition was completed on September 21 and Toshiba has been delisted from Tokyo exchange after 74 years. The purchase price was at 4,620 yen ($31) and the number of shares purchased, at 78.65 per cent, exceeded the minimum requirement. Toshiba shares ended their last trading day at 4,590 yen, down 0.1 per cent from the previous day.
Twitter rebrands as "X"
On July 23, Twitter rebranded as X. Elon Musk has been leading the platform since his acquisition in 2022 for $44 billion. The rebranding featured the replacement of the iconic blue bird logo with a stylised "X" logo across Twitter's websites, apps, and headquarters. Since its acquisition, Musk has made many changes to the platform including eliminating 3,700 jobs, which led to a lawsuit; removing Donald Trump's ban on the platform; charging monthly fees for verification marks, and temporarily capping the number of tweets that could be read in a day. Musk has said that he envisions the platform to become an "everything app".
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Photo: Bloomberg
EY abandons plan to split audit and consulting units
In April, EY, one of the Big Four accounting giants, reversed its decision to split its audit and consulting units, halting a proposed overhaul aimed at addressing regulatory concerns over potential conflicts of interest. Initially announced in September, the plan, known as Project Everest, aimed to spin off EY's consulting business and a significant portion of its tax practice into a standalone public company. Internal disagreements among partners, particularly regarding compensation and resources for the remaining audit practice, led to setbacks. Although EY expressed intentions to lay the groundwork for a possible future split, they acknowledged the need for additional time and investments to materialise this initiative.
Broadcom's $61 billion acquisition of VMware completed
Broadcom successfully concluded its $61 billion acquisition of cloud software maker VMware on November 22. Initially announced in May 2022, the acquisition of one of the largest in the tech industry raised uncertainties among VMware users and employees about the product lines Broadcom would continue to support. Broadcom's CEO, Hock Tan, assured ongoing support and growth with plans to invest $2 billion annually in VMware. Half of this investment will be allocated to research and development, while the other half will expedite the deployment of VMware solutions through professional services provided by VMware and its partners.
OpenAI CEO Sam Altman's unexpected removal and reinstatement
On November 17, Sam Altman, CEO of OpenAI, which released ChatGPT, was unexpectedly fired by the board, citing concerns about inconsistent communication. Reports hinted at internal tension over OpenAI's direction and technology use. The removal of Altman, who co-founded the nonprofit research lab in 2015, led to many employees threatening to quit.
Microsoft, a significant investor in OpenAI, hired Altman and Greg Brockman, another co-founder who resigned in protest. However, within days, Altman was reinstated as CEO of OpenAI, which led to a near-complete overhaul of the board.
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Photo: Bloomberg
Alphabet terminates 12,000 employees amid economic concerns
Alphabet, Google's parent company, decided to terminate 12,000 employees, constituting 6 per cent of its global workforce, due to recession fears at the beginning of 2023. Sundar Pichai, CEO of Alphabet and Google, announced layoffs in the US, with a gradual process in other countries in line with their respective labour laws. US-based employees were offered 16 weeks of severance pay plus two additional weeks for each year of service. Despite the significant downsizing, Google shares closed up over five per cent after the announcement.
Amazon announces plans to cut 18,000 jobs worldwide
On January 1, 2023, Amazon CEO Andy Jassy disclosed plans to eliminate over 18,000 roles globally. In November, Jassy had already hinted at reducing roles, including in physical stores, devices, and books divisions, with an initial estimate of around 10,000 job cuts. The layoffs primarily impacted Amazon Stores and PXT organisations, due to the rapid shift to online ordering. The company, which employed 1.54 million people at the end of the third quarter, also claimed to face challenges associated with its rapid workforce expansion.
Disney+ Hotstar removes HBO content
Disney+ Hotstar announced that it would be removing all of its HBO content in India from April. The announcement shocked subscribers and led to immense negative feedback for the streaming platform, which has seen a significant decline in its subscriber base. At the end of its fourth quarter in September, paid members dropped to 37.6 million. At its peak in October 2022, the platform had 61.3 million subscribers.
In a strategic move, Reliance, through its broadcast venture, JioCinema, partnered with Warner Bros Discovery Inc in late April. The deal, involving Reliance's Viacom18, paved the way for Warner Bros and HBO content to be available on JioCinema. The joint statement by the companies highlighted the inclusion of popular titles such as Succession, Game of Thrones, Lord of the Rings, and the Harry Potter series.
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Other Major Acquisitions:
Thoma Bravo's $8 billion Coupa Software acquisition
Thoma Bravo acquired Coupa Software for $8 billion in an all-cash deal announced on December 12, 2022, and finalised on February 23, 2023. The purchase at $81 per share in cash represented a 77 per cent premium.
CVS Health's $8 billion Signify Health acquisition
CVS Health acquired Signify Health for $8 billion, or $30.50 per share in cash, successfully closing the deal on March 29, 2023. Signify Health remains payer-agnostic but is now an integral part of CVS Health.
UnitedHealth's $5.4 billion LHC Group acquisition
UnitedHealth Group, with its subsidiary Optum, completed the $5.4 billion acquisition of LHC Group on February 22, 2023. LHC Group is now a wholly owned subsidiary of Optum, solidifying UnitedHealth's healthcare presence with the $170 per share transaction.
Amazon's $3.9 billion One Medical acquisition
Amazon finalised its $3.9 billion acquisition of One Medical on February 22, 2023. Despite ongoing investigations by the Federal Trade Commission, Amazon now stands as a primary medical care provider, gaining access to over 200 doctors' offices and around 815,000 One Medical members.
Honourable mentions:
Closure of National Geographic
On June 28, 2023, National Geographic, with a century-long legacy, laid off its remaining writers, marking the end of an era. Disney's ownership since 2019 had led to cost-cutting measures, including layoffs. The closure aligns with challenges faced by print media due to changing reading habits. Disney, facing various issues, also experienced a challenging year.
WWE-UFC merger
On September 13, the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), two major combat event promoters, officially merged under Endeavor, the UFC's parent company. Endeavor's acquisition of WWE's pro-wrestling brand valued the UFC at $12.1 billion and WWE at $9.3 billion, creating a $21.4 billion entity. Endeavor holds 51 per cent, while WWE shareholders own 49 per cent, making it a dominant player in sports and entertainment.
BBC chairman scandal and new appointment
BBC chairman Richard Sharp resigned on April 28, due to a conflict of interest in arranging an £800,000 loan to former British Prime Minister Boris Johnson while he held office. Samir Shah, a seasoned TV executive, was chosen as the new chairman on December 6. BBC is also facing £500 million in cost-cutting, a two-year freeze on its licensing fee, and governmental resistance to inflation-driven fee increases.
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Image: Wikipedia
