The tech industry is full of big brand names, but the business does not have as many independent players as it used to. Companies frequently gobble up smaller companies, creating larger conglomerates. So while you may see a bunch of different brands, they may have a lot more in common than you think (like their owners).
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Why would a company feel the overwhelming urge to merge? A company may want to strengthen its place in the market, so it buys up the competition. The new combined company now has a lot more leverage when handling business negotiations and the like.
If a company wants to branch out beyond its core business, it has a couple of options. It can try to extend its brand to a new market and hope that, one day, the product beats out all of its competition. The other option is to acquire an established player in the field, which acts as a shortcut into a new market while eliminating a potential competitor.
Occasionally, you’ll see that a company only exists as little more than a label. Why do companies keep around these labels? There’s a lot of goodwill built into the names of companies and these labels can also help differentiate products. For example, a company may put different brand names on its budget, mainstream, and premium lines.
So, consumers may not even realize that another company owns their favorite brand. You may not even care, but just in case you’re curious (we are!), we’ve highlighted what we think are some of the most important acquisitions in the tech world.