Inside Big Tech’s Billion-Dollar Shopping Sprees: Microsoft, Apple, and the Art of Mega Acquisitions
Written by Massa Medi
In the high-stakes world of technology, a billion dollars can seem like pocket change. Yet, just over two decades ago, a billion-dollar deal was remarkable enough to make headlines. Cast your memory back to January 2000: Microsoft made its first-ever acquisition worth a cool US$1 billion, purchasing Vizio Corporation, a Seattle-based company known for its diagramming software. It was a pivotal move—one that foreshadowed a new era of tech consolidation.
Fast-forward 22 years, and Microsoft once again turned heads, announcing the largest acquisition in its history—and the biggest in the tech sector to date. The target? Gaming powerhouse Activision Blizzard, in a staggering cash-and-stock transaction valued at US$68.7 billion.
How big is $68.7 billion? For some real-world context: that’s roughly equal to the annual GDP of Guatemala, a nation of 17 million people. In other words, Microsoft was prepared to spend on one video game company what a small country would generate in an entire year.
The Famga Five: Tech’s Top Acquisition Kings
The giants driving these blockbuster deals are commonly referred to as FAMGA—that’s Facebook, Apple, Microsoft, Google, and Amazon. Over the last three decades, these five titans have collectively made over 800 acquisitions, with 35 of those valued at more than a billion dollars each.
You might guess that Apple—with its famous cash reserves—would lead the pack in massive acquisitions. Surprisingly, Apple actually trails behind its peers in billion-dollar deals. In fact, the company has only made two acquisitions north of a billion: Beats Electronics (for $3 billion) and Intel's smartphone modem business (for $1 billion).
Facebook isn’t very far ahead, coming in fourth, but its billion-dollar deals were nonetheless headline-grabbing. Its notable purchases include WhatsApp, Oculus, Instagram, and Control Labs, making for a total of five such major acquisitions.
Amazon edges ahead into third, logging six billion-dollar or larger purchases. These include household names and staples like the Whole Foods grocery chain and Metro-Goldwyn-Mayer (MGM), the legendary film studio.
Google—no stranger to splurging—takes second place with eight major acquisitions. Their shopping list features big names like Motorola, smart-thermostat leader Nest, and the essential ad platform DoubleClick.
Microsoft: King of Big Tech Acquisitions
And then there’s Microsoft: the undisputed champion of tech acquisition spending. Over the years, Microsoft has completed 13 acquisitions valued above $1 billion, covering a vast swath—from gaming companies and productivity tools to development environments.
If the Activision Blizzard deal closes, Microsoft will not only hold the record for the biggest FAMGA acquisition ever but will also own two of the three largest tech buys to date. The only other contender in the top three is Facebook’s $22 billion purchase of WhatsApp, which takes the bronze to Microsoft's gold (Activision Blizzard) and silver (LinkedIn).
To put another feather in Microsoft’s cap, the proposed Activision Blizzard acquisition would also rank as not just the biggest FAMGA deal but the biggest gaming industry acquisition in history—by an overwhelming margin.
When Big Tech Buys Go Wrong
But these mega-acquisitions aren’t always a highway to success. Some, in fact, have turned into cautionary tales. Let's revisit two of the most infamous flops:
- Microsoft and Nokia (2013): Microsoft spent $5 billion to acquire Nokia’s handset division, along with $2.2 billion for patent licenses—moves that then-CEO Steve Ballmer called “a bold step into the future.” Unfortunately, within just a few years, the project failed to gain traction and new CEO Satya Nadella wrote off the entire investment.
- Google and Motorola Mobility (2011): Google bet big—$12.5 billion—on Motorola’s handset business and patent trove, hoping to shield itself from ongoing patent disputes. The patents proved useful, but Motorola’s hardware division faltered, and was sold two years later to Lenovo for just $2.9 billion—a spectacularly fast and costly loss.
Microsoft’s Relentless Acquisition Streak
If you zoom out for the big picture, Microsoft emerges as the tech world’s most prolific dealmaker. Since first entering the M&A scene in 1987, Microsoft has snapped up an average of six companies every year. Their appetite for corporate growth remains undiminished; since the start of 2020 alone, Microsoft has completed 25 acquisitions—eclipsing all four of its FAMGA peers, both in size and quantity.
For those who love business drama and digital empires, one thing is clear: Microsoft continues to set the pace in the world of high-value tech deals, buying at a rate—and scale—that few can match.
That wraps up the debut episode of our new tech analysis series, Charter. If you enjoyed this deep dive into the world of billion-dollar buyouts, be sure to subscribe—there’s plenty more business storytelling to come. For those hungry for the finer details, every source cited here is available in the description below. Stay tuned!