Motley Fool Money Acquisition Mindset
Feb 23, 2022
In this engaging discussion, Jason Moser, a Senior Analyst at Motley Fool, and Makarand Mody, a Boston University marketing professor, delve into the hot topic of acquisitions in 2022. Moser highlights Teladoc's successful purchase of BetterHelp while examining the uncertainties surrounding Livongo. Meanwhile, Mody reveals how Airbnb disrupts the hospitality industry, notably affecting hotel prices. Together, they offer insights on Lowe's strategic advancements and the evolving dynamics in home improvement amidst inflation.
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BetterHelp Acquisition
- Teladoc's acquisition of BetterHelp for $4.5 million was a success, generating over $700 million in revenue in 2021.
- This contrasts with their purchase of Livongo, which has yet to prove as fruitful.
Acquisitions as a Portfolio
- Company acquisitions should be viewed like a portfolio, with some winners and some losers.
- Not all acquisitions will be successful, similar to stock picking.
Livongo's Potential
- Teladoc's acquisition of Livongo, while expensive, focused on the growing chronic care market.
- With a large potential market, Livongo could generate long-term revenue streams for Teladoc.