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Horizontal integration

Horizontal integration is a business strategy where a company expands its operations by acquiring or merging with other companies that operate at the same level in the same industry. This approach aims to increase market share, reduce competition, achieve economies of scale, and diversify product or service offerings

Recent Examples of Horizontal Integration:

  1. Microsoft's Acquisition of Activision Blizzard (2022): In January 2022, Microsoft announced its plan to acquire Activision Blizzard, a leading video game publisher, for $68.7 billion. This acquisition aimed to enhance Microsoft's gaming portfolio and strengthen its position in the gaming industry.
  2. Facebook's Acquisition of Instagram (2012): Although not recent, Facebook's acquisition of Instagram in 2012 for $1 billion is a notable example of horizontal integration. Both companies operated in the social media industry, and this move allowed Facebook to expand its user base and advertising capabilities.
  3. Disney's Acquisition of 21st Century Fox (2019): In March 2019, The Walt Disney Company completed its acquisition of 21st Century Fox for $71.3 billion. This merger combined two major players in the entertainment industry, allowing Disney to expand its content library and streaming services.


    These examples illustrate how companies use horizontal integration to strengthen their market position, diversify offerings, and achieve strategic growth objectives.

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