Evaluating the Synergy Effect of M&A Deals in BigTech

Large corporations invariably operate in a highly competitive environment, which forces them to constantly evolve. In the information technology industry, this problem is particularly acute due to the rapid emergence of new developments. The speed of this process is so high that there is a hypothetical possibility of establishing a technological singularity - a state in which technological development becomes uncontrollable and irreversible. When faced with such challenges, the largest technology companies, known as BigTech and including Alphabet, Meta, Apple, Amazon and Microsoft, often resort to taking over companies operating in industries promising for corporations. This paper will examine eight hundred and eighty-four M&A deals made by BigTech companies from two perspectives: both from an event study perspective, i.e. assessing their impact on stock returns, and from the perspective of their impact on the financial performance of the companies, namely inter-quarter revenue growth rates.