Mergers and Acquisitions Recap: Verizon Gets Giddy, Oracle and Salesforce Inflate Egos

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Verizon (NYSE:VZ) purchases Hughes Telematics (HUTC.OB) for $612 million or $12 per share in cash, in a deal that the buyer says would expand its capabilities in the automotive and fleet telematics marketplace, plus speed up growth in key vertical segments, which include emerging machine-to-machine services applications.

Samsung (SSNLF.PK) buys Nanoradio, which is a developer of Wi-Fi chips for mobile devices based in Sweden. The acquisition reflects Samsung’s strategy to internally source its mobile components as much as can be done. However, the buyout is probably not a good thing for Broadcom (NASDAQ:BRCM), which is currently a major provider of Wi-Fi/Bluetooth combo chips for the world’s largest phone supplier.

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MetLife (NYSE:MET) takes itself out of the race for the $7 billion acquisition of ING’s Asia life insurance unit, says a source. This isn’t good news for ING, as MetLife is the second large potential buyer to drop out – Prudential was the first – which implies that the sale might need to be divided into pieces.

Oracle’s (NASDAQ:ORCL) acquisition of Vitrue, and Salesforce.com’s (NYSE:CRM) purchase of Buddy Media (said to be pending) might not be the smartest moves, says Jim Edwards, who notes ‘Madison Ave.’s long history of crushing upstarts trying to “disrupt” it’. In an evaluation that is relevant to both buyers, plus Bazarrvoice (BV) and Constant Contact Inc. (NASDAQ:CTCT), Edwards questions the effectiveness of advertising in social media, and notes that Facebook could turn into a direct rival, and Oracle and Salesforce’s enterprise software focus might be a downside.

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