Digital mergers and acquisitions: Creating or destructing value?

Maisenhelder F, Baccarella C, Maier L, Müller J, Voigt KI (2025)

Publication Language: English

Publication Type: Journal article

Publication year: 2025

Journal

European Management Journal Wiley-Blackwell

DOI: 10.1016/j.emj.2025.08.002

Abstract

To access digital capabilities, firms often acquire more digital counterparts. In this work, we investigate whether and when acquiring digital-technology-driven companies (i.e., digital merger and acquisitions (M&A) lead to abnormal returns for acquirers. While empirical research indicates that M&A often do not create value for the acquiring firm, we draw on signaling theory and argue that, in the context of digital M&A, these effects may be less straightforward. Specifically, by applying an event study method drawing on a sample of digital M&A deals by S&P 500 firms between 2014 and 2018, our findings reveal that non-digital acquirers experience a positive effect on their market value around the announcement of the focal digital M&A, which is not reversed in the long run. However, for digital acquirers, we find neither a short-term nor a long-term effect of digital M&A on their market value. Our findings further show that, for non-digital acquirers, disclosed (vs. non-disclosed) deal prices increase the positive effect on market value. Taken together, our work provides a more nuanced look at digital M&As and highlights a novel benefit for non-digital acquirers, that is, increased market value. As such, the paper contributes to the literature on signals in market valuation and M&A research in the digital age.

Authors with CRIS profile

Julian Müller Professur für Digital Industries Kai-Ingo Voigt Lehrstuhl für Betriebswirtschaftslehre, insbesondere Industrielles Management

Involved external institutions

Versicherungskammer Bayern DE Germany (DE) Free University of Bozen - Bolzano IT Italy (IT) Wirtschaftsuniversität Wien (WU) AT Austria (AT)

How to cite

APA:

Maisenhelder, F., Baccarella, C., Maier, L., Müller, J., & Voigt, K.-I. (2025). Digital mergers and acquisitions: Creating or destructing value? European Management Journal. https://doi.org/10.1016/j.emj.2025.08.002

MLA:

Maisenhelder, Fabian, et al. "Digital mergers and acquisitions: Creating or destructing value?" European Management Journal (2025).

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