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Business
Acquisition
The process of one company purchasing most or all of another company's shares to gain control of it.
An acquisition happens when one company buys another — either because it wants the target's technology, its customers, its talent, or simply to eliminate a competitor. The buyer is called the acquirer; the company being bought is the target.
Acquisitions can be friendly (both boards agree) or hostile (the acquirer bypasses management and goes straight to shareholders). They're funded with cash, stock, debt, or a combination — and the price almost always includes a premium over the target's current stock price, because you have to convince shareholders to sell.
Think of it like Pokémon. One company essentially says "I choose you" to another — and catches it. The acquired company doesn't disappear; it usually keeps running, but now it reports to a new boss. The acquirer is trying to level up fast rather than training from scratch.
Real world: When Disney acquired Marvel in 2009 for $4 billion, many people thought it was risky. Fast-forward to today — the MCU has earned over $30 billion at the box office alone. Disney didn't just buy a comic book company; it bought an entire universe of characters, stories, and loyal fans.
💡 An acquisition is a shortcut to growth — you buy what would take years to build.