The AT&T (T) -Time Warner (TWX) deal has, correctly, taken center stage because of its sheer $85 billion size, the largest deal of the year. I know I have written of that deal in other places, but I think the combination's logic is questionable and hopeful and it may not pass government muster. It's a deal motivated from fear that T-Mobile (TMUS) and Sprint (S) are taking customers from its core business, while Facebook (FB) , Google (GOOGL) and Amazon (AMZN) are always capable of getting into the phone and content businesses in a big way with expensive stocks and lots of free content to advertise against in a highly personalized fashion.
If you look at the plethora of deals from this merger Monday, you see a whole ream of deals that make a ton of sense.
For example, how smart is it that Rockwell Collins (COL) , which makes so much flight equipment both in the cockpit and in the cabin, purchases another company with terrific franchises in the plane, B/E Aerospace (BEAV) , for $6.4 billion? I have long admired the latter company because of its expertise in seating, galley equipment and organization and on-board lavatories. (Amazon and B/E Aerospace are part of TheStreet's Growth Seeker portfolio.)
There's a three-company oligopoly when it comes to commercial planes: Boeing (BA) , Airbus and Bombardier. You need some heft to keep those companies from playing you off and forcing you to discount your goods. B/E gives Collins that heft. Rockwell Collins gets more diversification, including diversification away from private jets, which are so weak because of downturns in oil. These two companies are very much related to the smartplane, a growth business. It's a good deal for both the acquirer and the acquired. I love it.
Same with this amazing deal by the Toronto Dominion Bank (TD) and subsidiary TD Ameritrade to purchase Scottrade for $4 billion, with TD Ameritrade snaring Scottrade's brokerage. In the dog-eat-dog world of brokerages, Ameritrade can take out a competitor, cut costs and, I bet, keep a lot of the business. This, again, is the kind of additive deal that I love that gives wins all around.
Then I know that people who own Genworth (GNW) might be disappointed with the so-called "take-under" by the Chinese company Oceanwide, but the $5.43-a-share cash deal is exactly double where it was just last summer. There were grave concerns then about Genworth's balance sheet because of its overexposure to the dangers of long-term-care insurance, where so many assumptions turned out to be wrong when contracts were let, namely the length of life and the end-of-life health care costs.
Again, a good deal for shareholders and for policyholders like me. Congratulations, Genworth, for easing a lot of people's minds.
These kinds of deals, including the hoped-for deal of Qualcomm (QCOM) buying NXP Semiconductor (NXPI) , which my colleague David Faber said today is still very much on track, makes a huge amount of sense. Qualcomm is way too tied in with cellphones while NXPI gives it great diversification into the Internet of Things and the big growth area of autos. Qualcomm's stock has gone higher the whole time these talks have gone on, which is a tremendous sign and one that shows you it's another win-win. (Facebook, Google and NXP Semiconductor are part of TheStreet's Action Alerts PLUS portfolio. Qualcomm is part of the Dividend Stock Advisor portfolio.)