Batman and Robin. Siskel and Ebert. Great Britain and the United States in World War II. Cookie dough and ice cream. Usually, when two distinct entities join together, they form one opposable force.
Or do they? While there are major success stories to be found when two large tech companies come together, there's a Time Warner-AOL fiasco for every Oracle-Sun combination.
To see how a few mega-mergers are faring so far, CIO.com decided to check in with a few analysts and experts to get an update on the tech titans of today. Some are working, while others seem poised to join the ranks of the bad tech mergers.
Yahoo and Tumblr: Not Much Has Changed
Yahoo acquired Tumblr in May 2013 for $1.1 billion. Since then, Tumblr hasn't changed significantly, with user counts having only risen about .16 percent over the last year, per Compete.com.
IT analyst Charles King says there was some initial concern over how Yahoo would handle adult-oriented content on Tumblr, but the issue has not raised a stir recently. "It's clear Yahoo hopes it can monetize Tumblr as part of its unified advertising strategy," he says.
Facebook and Instagram: Strong Growth to Fend Off Competitors
With some high-profile mergers such as Time Warner and AOL, users responded by fleeing to the hills. When Facebook acquired Instagram in 2012 for $715 million, it seemed like no one noticed (though, King wonders why any company would pay $3 per user.) In fact, one report suggests massive growth - 90 million new Instagram users since the end of 2012.
Consumer analyst Rob Enderle says the story is still unfolding. There are signs that Facebook will be able to monetize Instagram's still strong user base and that the combination will help fend off mobile competitors such as Snapchat. ( Facebook's recent acquisition of WhatsApp may help here, too, though it's much too soon to tell.
Dell and Wyse: With New Thin Client, So Far, So Good
By most accounts, the Dell acquisition of Wyse in 2012 for a reported $400 million has worked out quite well: The new Cloud Connect thumbdrive plugs into any HDTV to use that screen as a secure thin computer. This kind of remote cloud access using a thin client is an important step away from the "personal computer" where files are stored locally. "Dell is making a smart move by embracing the cloud," says Braun.
Google and Motorola: Keeping Patents, Ditching Hardware
At the time of Google's $12.5 billion acquisition of Motorola (May 2012, when Chinese regulators gave it the OK), the marriage of the Android OS with a popular hardware brand seemed logical. Google needed a hardware platform to lead the way for partners like Samsung and HTC. Unfortunately, it hasn't worked out; Lenovo is buying key parts of Motorola, the famed company that invented the cell phone, for less than $3 billion. Google will retain key patents - which might have been the goal all along.
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