While industrial landscapes are, of course, complex and multifaceted, this development is evident in a spate of vertical acquisitions in the biopharmaceutical, agricultural biotechnology, and information technology industries.
(121) Indeed, as shown in Table 1 below, Bristol-Myers Squibb's recent vertical acquisitions of biotech firms demonstrate a decided push toward bringing such upstream sources of new drugs in-house.
Importantly, many of these vertical acquisitions reflect semi-integration.
(218) Additionally, as shown in Table 3 below, recent vertical acquisitions by Facebook show a pattern of bringing upstream software and technical providers in-house to integrate with its social network.
We've seen other vertical acquisitions
, such as hospitals becoming insurers, but the concern we've had is that there's not a good track record of these health care mergers improving customer experience or lowering the cost of health care.
The FTC included in 1966 that "vertical acquisitions
by cement manufacturers, especially of sizeable ready-mixed concrete companies, can have substantial adverse effects on competition.
The interference of horizontal and vertical acquisitions
with maintaining alignment may be attributable to visual insensitivity to depth variations caused by Spaceball axis cross-couplings or, perhaps, to physical difficulty in using the Spaceball to control the depth axis.
Companies such as Disney and Sony have made vertical acquisitions
not only for growth but also because they believe they can achieve competitive advantage though such deals: Cap Cities/ABC and Canada's Imax, respectively.
Horizontal acquisitions occur when firms acquire their competitors, vertical acquisitions occur when firms acquire their suppliers or distributors, and conglomerate acquisitions occur when firms acquire unrelated firms.
Hypothesis 3b (H3b): The number of prior vertical acquisitions by tied-to firms is positively associated with the number of current vertical acquisitions by the focal firm.
As predicted by H3b, there is a positive relationship between the number of vertical acquisitions completed by the tied-to firms and the number of vertical acquisitions completed by the focal firm.
There is no relationship between horizontal and vertical acquisitions by the tied-to firms and conglomerate acquisitions by the focal firm.