Internet upstarts such as Zynga are seeking to aggressively expand in the mobile market through mergers and acquisitions

Internet upstarts such as Facebook, Groupon, and social game developer Zynga are looking to aggressively expand in the mobile market through mergers and acquisitions. In the first quarter of this year, the three companies have completed 21 deals.

Facebook, Groupon and Zynga are snapping up innovative companies at a record rate in Silicon Valley, raising the value of innovation companies and hoping for a big increase in those eager to cash in. The three companies have bought at least 21 companies in the first quarter of this year, up by more than a year earlier, the data provided by Dealogic and source, the US financial data provider.

While Facebook, Groupon and Zynga have never been timid about acquisitions in the past, three companies have picked up the pace of recent acquisitions and completed deals with unprecedented valuations. Among the three acquisitions, such as Facebook's acquisition of app developer Glancee, the strategic intent behind it is clear: acquiring mobile technology or entering new markets, rather than acquiring technical talent through acquisitions, as in the past.

Facebook, Groupon and Zynga are actively involved in mergers and acquisitions, thanks to the large sums they have raised through IPOs and the upcoming IPO. Groupon and Zynga made their initial public offerings at the end of last year, raising 805 million of dollars and 1 billion of billions of dollars respectively. Facebook is due to open its IPO this week, with a maximum of 13.6 billion dollars expected to be raised.

The pace of rapid takeovers and the rise in valuations has increased expectations for entrepreneurs and investors who want to cash in. "The effect of Facebook, Groupon and Zynga's takeover of companies has been instrumental in the already very hot venture environment," Patricia Na Katcher, partner of Trinity Ventures, a venture capital firm, said. But it also adds to the bubble of investment climate in the short term. "Trinity Ventures, a tourism innovation company uptake, was bought by Groupon this February.

Jason Willig, chief executive of Booyah Mobile gaming company based in San Francisco, Jason Willich the same view, saying: "I think the opportunities for many companies to get out of the market have increased significantly." ”

Facebook is the most aggressive acquirer among Facebook, Groupon and Zynga's three companies. According to Dealogic, Facebook bought 12 companies in the first quarter of this year, equivalent to the total volume of transactions completed throughout the year. According to Dealogic, Facebook has become one of the most aggressive buyers in Silicon Valley. In the first quarter of this year, Google completed 13 deals.

Facebook last month just completed its largest merger deal since its inception-$ 1 billion trillion for Instagram, a photo-sharing application provider. Mark Zuckerberg, Facebook's chief executive, said at the time that the acquisition of Instagram was different from previous acquisitions because Instagram technology would be integrated into Facebook's mobile strategy, To help Facebook strengthen its presence in the mobile marketplace. In addition to acquiring innovative companies, Facebook has also spent money on other users. Earlier, Facebook bought some of AOL's patents from Microsoft with $550 million trillion.

At the same time, Zynga has completed its largest acquisition this year: $180 million trillion in March this year to buy game developer Omgpop. The deal amounts to more than Zynga's total acquisitions in 2010 and 2011. Zynga completed 22 mergers and acquisitions in the previous two years, trading at more than $147.2 million trillion. In addition to Omgpop, Zynga has not disclosed how many mergers and acquisitions the company has completed this year.

Rob Coneybeer, a venture capital firm Shasta Ventures Partner, has been very knowledgeable about how much Zynga is keen to acquire innovative companies. Connibbill previously invested in a 20-person mobile gaming innovation company, Wild Needle, which was bought by Zynga a week ago. Connibbill said Zynga executives made a quick decision to make acquisitions, making it hard for wild Needle's founders to refuse. Connibbill said Zynga's reluctance to miss out on future developments has also made the company a radical acquirer.

Groupon completed 7 mergers and acquisitions in the first quarter of this year, equivalent to the total volume of transactions last year. But unlike Facebook and Zynga, Groupon's deals are small. The company's documents to the Securities and Exchange Commission show that so far, the company's total purchase deal is only 28.4 million U.S. dollars. Groupon said the company was involved in the deal to recruit talent to launch new products and technologies. This is quite different from Groupon's approach last year. In 2011, Groupon focused on acquiring group buying sites on the international market to expand.

But both Facebook and Zynga executives have said the two companies are unlikely to make big deals in the future. Mark Pincus, Zynga's chief executive, said in a conference call with analysts last month that there would not be too many Mark Ping acquisitions like Omgpop. Facebook founder Mark Zuckerberg, who also announced the acquisition of Instagram's official blog, said, "We have no plans for such a merger." ”