Disney, Ford, Microsoft, and the era of strategic partnerships
In today’s interconnected world, no company operates in isolation. Collaboration and competition go hand in hand. Rather than full-on mergers, firms are increasingly opting for strategic partnerships to combine resources and expertise.
These strategic alliances are gaining popularity across various industries, from technology and AI to automotive and energy. While traditional takeovers have slowed down, joint ventures and partnerships have surged by 40% in 2023, according to Ankura, a consultancy firm. This trend is particularly prevalent in sectors experiencing rapid technological advancements and facing protectionist policies.
As trade barriers increase, interest rates remain high, and regulators scrutinize acquisitions, companies like Disney, Ford, and Microsoft are turning to strategic partnerships to expand their business empires. This trend has been exemplified by recent collaborations, marking the dawn of the quasi-merger era.
When firms opt for collaboration, they often establish joint ventures to share ownership of a separate entity. For instance, Disney recently announced a sports-streaming service that combines its ESPN network with content from competitors Fox and Warner Bros Discovery. Similarly, in India, Disney partnered with Reliance, a major conglomerate, in an $8.5 billion deal.
2024-04-22 13:42:14
Source from www.economist.com