Emphasis on parent companies that are still struggling from bad M&A decisions so community knows what companies to avoid or take a risk in investing in them for a turnaround.
One is Take-Two acquiring Zynga on May 23, 2022. Buying an unprofitable mobile developer turned them from a profitable, cash flow positive company to an unprofitable, cash flow negative company given Zynga's P&L and recession in mobile gaming.
Another is Okta purchasing Auth0 for $6.5 billion in March 2021. Auth0 was estimated to have about $200 million in revenue while Okta was $835m to end their FY '21. Since the acquisition, Okta is down almost 70% to a $14b market cap and the $6.5 billion acquisition is almost half of Okta's current value.
Both of these companies aren't lower 100% due to the poor M&A decision, but contributed to destroyed shareholder value and why they've underperformed their peers.
[link] [comments] https://www.reddit.com/r/stocks/comments/13uebwu/what_are_the_worst_ma_decisions_that_has/
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