FiveHundredCents
Excellent Contributor
wrote a post · Mar 15, 2022 14:38
Alphabet Decides to Start Buying Companies With Its $5.4 Billion Mandiant Purchase
$Alphabet-C (GOOG.US)$$Alphabet-A (GOOGL.US)$ On March 8, Alphabet announced a purchase of$Mandiant (MNDT.US)$at $23 per share. This involves paying $5.4 billion in cash in a definitive agreement with the company. If Alphabet keeps up with this kind of activity, it is possible that analysts and the market could see this as a catalyst that could push GOOG stock higher. This is because it might allow the company to boost its cloud computing business as it battles against both$Amazon (AMZN.US)$and $a$Microsoft (MSFT.US)$. Mandiant sells internet security products that it can use to enhance its cloud computing offerings to businesses and consumers. According to Bloomberg, this "small" $5.4 billion acquisition, is still the second-largest in its history. In 2012 it bought Motorola for $12 billion, but that never turned into a major earnings contributor for the company.
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