In today's world, technology has become an integral part of our lives, and it's hard to imagine our lives without the influence of major tech companies. Among these, the term FAANG (Facebook, Amazon, Apple, Netflix, and Google) has been around for some time, but there is a new acronym that's gaining popularity - GAFAM (Google, Apple, Facebook, Amazon, and Microsoft). These five tech giants have a combined valuation of over $5 trillion and have a significant impact on our society, culture, and economy. In this article, we will dive into the world of GAFAM and explore how these companies are transforming the way we live, work, and interact with each other.
What is GAFAM?
GAFAM is an acronym that stands for Google, Apple, Facebook, Amazon, and Microsoft. After FAANG, this phrase was coined (a term used to define the most popular technology companies across the world) GAFAM, sometimes known as the Big Five, are the world's most popular and dominant corporation. The combined valuation of the tech titans exceeds $5 trillion.
Goldman Sachs invented the term, which covers these firms for two reasons. To begin with, the top five technology companies account for up to 13% of the total market capitalization of the S&P 500. Second, they are the major corporations that bring sociocultural progress on a large scale and accelerate societal transformation.
What’s the Difference between FAANG and GAFAM?
The term GAFAM has all the companies that were already included in FAANG, except for Netflix. Amazon is included in the list, considering that it happens to be a consumer services company. With that being said, Amazon contributes to the technology sector with its Amazon Web services.
The Big Five
In 2018, the Big Five corporations had a combined market valuation of $4.1 trillion. Apple is the Big Five's oldest corporation, dating back to 1980. Since 2011, these technology-based firms have dominated the market.
- Google (Alphabet)
Founded: September 4, 1998
Founders: Larry Page, Sergey Brin
Revenue: $257.6 billion (2021)
Employees: 156,500 (Dec. 2021)
Google began as a search engine, but it has grown into a technology behemoth and one of the top five technology companies. Google was reorganised in 2015 as a subsidiary of Alphabet Inc, a larger holding company.
List of companies acquired by Google
Acquired on: March 8, 2022
Cost of acquisition: $5.4 billion
Acquired on: January 14, 2021
Acquisition cost: $2,100,000,000
Acquired on: August 15, 2011
Acquisition cost: $12.5 billion
Acquired on: October 9, 2006
Acquisition cost: $1.65 billion
Acquired on: October 2003
Acquisition cost: (Undisclosed)
2. Apple
Founded: April 1, 1976
Founders: Steve Jobs, Steve Wozniak, Ronald Wayne
Revenue: $365.82 billion (2021)
Employees: 154,000 (Dec. 2021
In contrast with the rest of the big five tech companies, Apple prefers acquiring small companies that can easily integrate into its line of products.
List of companies acquired by Apple
Acquired on: September 24, 2018
Acquisition cost: $400 million
Acquired on: August 1, 2014
Acquisition cost: $3.0 billion
Acquired on: April 27, 2010/ $1 billion
Acquisition cost: $150.0 – $250.0 million (undisclosed)
Acquired on: July 1, 2002
Acquisition cost: $30.0 million
Acquired on: February 7, 1997
Acquisition cost: $431.5 million
3. Facebook (Meta)
Founded: February 4, 2004
Founders: M. Zuckerberg, E. Saverin, A. McCollum, D. Moskovitz
Revenue: $117.929 billion (2021)
Employees: 77,805 (March 2022)
Facebook originally went under the moniker 'FaceMash.' However, they eventually changed the name to 'TheFacebook.' To reflect its concentration on the forthcoming metaverse, Facebook's parent company changed its name to Meta Platforms, or just Meta, in October 2021.
Its expansion is unstoppable, with 3 billion active users now. Facebook has been quite active in its acquisitions since its inception, and it has now become one of the major five digital giants. Despite being only 18 years old, Facebook has acquired over 70 businesses.
List of companies acquired by Facebook
Acquired on: May 15, 2020
Acquisition cost: $400,000
Acquired on: April 19, 2014
Acquisition cost: $19 billion
Acquired on: March 25, 2014
Acquisition cost: $3 billion
Acquired on: April 9, 2012
Acquisition cost: $1 billion
Acquired on: August 10, 2009
Acquisition cost: $47.5 million
4. Amazon
Founded: July 5, 1994
Founder: Jeff Bezos
Revenue: $469.822 billion (2021)
Employees: 1,608,000 (Dec. 2021)
Amazon began in the mid-1990s as an online bookstore selling books. It has now surpassed Walmart as the world's largest retailer. It is also the most profitable company in the world, not just in comparison to GAFAM.
The multinational has expanded beyond the eCommerce sector. Amazon's interests range from artificial intelligence to cloud computing, with over 100 acquisitions.
List of companies acquired by Amazon
Acquired on: May 26, 2021
Acquisition cost: $8.45 billion
Acquired on: June 26, 2020
Acquisition cost: $1.2 billion
Acquired on: August 28, 2017
Acquisition cost: $13.7 billion
Acquired on: August 25, 2014
Acquisition cost: $970 million
Acquired on: August Jan 31, 2008
Acquisition cost: $300 million
5. Microsoft
Founded: April 4, 1975
Founders: Bill Gates, Paul Allen
Revenue: $161 billion (2021)
Employees: 182,268 (2021)
Microsoft Corporation, the oldest of the big five IT businesses, made its acquisition debut in 1983. It all began with a corporation well-known for its developers, who created what is now known as Microsoft PowerPoint. Since then, the MS Corporation has acquired an average of six businesses every year. This GAFAM corporation has succeeded and continues to expand its supremacy in various technical industries throughout the years, thanks to successful strategic acquisitions and mergers.
List of companies acquired by Microsoft
Acquired on: January 18, 2022
Acquisition cost: $68,7 billion
Acquired on: October 26, 2018
Acquisition cost: $7.5 billion
Acquired on: December 8, 2016
Acquisition cost: $26.2 billion
Acquired on: May 10, 2011
Acquisition cost: $8.5 billion
Acquired on: December 31, 1997
Acquisition cost: $500 million
