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.
(195.) For instance, in the 1980s, many large corporations sold their chemical units, thus freeing up capital for vertical acquisitions. See KING, supra note 33, at 6.
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.