Craft-brewed beers have become extremely popular in California and around the country in the last two decades, and independent breweries that were once struggling are now extremely successful. The Boston Beer Company, which is best known for its Samuel Adams line of beers, has long been one of the leaders in the craft-brewed sector, but smaller local companies like the Dogfish Head Craft Brewery have been taking a larger share of the market in recent years.
Californians who follow business news might be interested in learning about a merger that was recently announced between McGraw-Hill Education and Cengage Learning Holdings II, two large educational publishers. The companies announced that they will merge together in an all-stock deal to create the second-largest publisher of educational materials in the U.S.
Many California companies look at mergers and acquisitions as an important way to enhance or expand their business portfolios. However, publicly traded companies or firms in certain industries may find that government regulations could stymie their plans to merge. Two national wireless carriers, Sprint and T-Mobile, are facing obstacles that could derail their planned transaction.
California residents who follow the medical sector are probably aware that the retail pharmacy chain CVS Health Corp. is in the process of acquiring the managed health care company Aetna Inc. in a deal reported to be worth almost $70 billion. Attorneys for the two companies closed the deal in November 2018 and the U.S. Department of Justice approved the acquisition providing the two companies sold certain assets. Most analysts expected the acquisition process to be completed quickly following the DOJ decision, but hopes of a speedy resolution were dashed on April 5 when a federal judge announced that he would be holding hearings to allow those with concerns about the deal to be heard.
Two major players in the entertainment market are being combined as part of a Comcast expansion, which affects international distribution of U.S. programming produced in California and elsewhere. After Comcast took over Sky, it made plans to launch a series of reorganization plans. This process will include the merger of some operations performed by NBCUniversal International with those of Sky.
California business owners need to make sure that their companies are as safe from a cyber attack as possible. This is true whether an individual started a company from scratch or has recently acquired or merged with an existing organization. One way to ensure that a company is secure is to do due diligence prior to merging with another business.
California residents may have heard the news that Nvidia has acquired Mellanox for $125 per share. This translates to a 5.5 percent premium and a total purchase price of $6.9 billion. Although the price is thought to be fair for both parties, it is seen as a risky acquisition for Nvidia. It is thought that there may be limited opportunities for synergy between the two businesses.
BlackBerry, one of the originators of secure smartphone technologies, has become a billion-dollar security company with products aimed at the business market. In February, the firm acquired Cylance, a California-based, privately-held cybersecurity and artificial intelligence company, for $1.4 billion. According to BlackBerry's CEO, the company aims to become the world's largest firm in both fields, offering a range of products to businesses who want to ensure that their employees can communicate securely across a range of platforms.
In a case that is of interest to many Californians, a massive merger of media giants has been affirmed by the U.S. Court of Appeals for the Federal Circuit. The decision paves the way for AT&T to take over Time Warner for $81 billion.
Cylance, a California-based artificial intelligence and cybersecurity firm, has been acquired by BlackBerry, the security firm that originated as one of the leaders in mobile technology. The chairman of BlackBerry said that the acquisition reflects the company's goal of becoming a leader in the AI and security fields. Because BlackBerry contained secure messaging as a part of its platform from its early days, it was well-positioned to include other cybersecurity companies' products within its overall approach. The company stated that its goal is to allow other businesses to create secure communications between their users.