Here’s How the FAANG Lawsuit Affects You
Big Tech is in big trouble… and it’s ringing in one of the best eras for startup investing yet.
This week, the United States Department of Justice filed a landmark lawsuit against Google, accusing them of holding a monopoly over the online search industry.
Google is part of the FAANG group (Facebook, Amazon, Apple, Netflix, and Google).
Together, these companies have a market capitalization of more than $4 trillion. To put that number into perspective, that’s around 12% of the entire S&P index.
All five FAANG companies have been accused before of using their power to smother their competition and gain control of the markets.
As recently as this summer, these companies were grilled by the House Antitrust Subcommittee on these exact allegations.
We’ve seen this happen before.
In the late 1990s and early 2000s, Microsoft faced a similar antitrust lawsuit from the DOJ, in which they were accused of holding a monopoly over the PC industry.
The court ruled that Microsoft did violate federal antitrust laws and ordered them to break up into two companies. But when Microsoft appealed the decision, it was overturned.
The Google lawsuit is the highest profile and largest antitrust lawsuit since the Microsoft case over two decades ago.
But why is it significant to the startup world?
One of the most important points argued by the Committee is that the FAANG companies overstep their rights by gobbling up smaller competitors with the sole mission of removing them from the playing field.
The fact that these Big Tech companies feel the need to acquire and overtake companies shows that they see the true power that startups have.
Startups drive the tech world. Without them, we’d be at a complete standstill.
And they’re clearly keeping the big guys on their toes.
The way I see it, this lawsuit could affect startups in one of two ways.
With Big Tech in trouble, this could be a great opportunity for tiny startups to break out and see incredible growth over the coming months and years.
This would definitely be the case if the antitrust committee decided to split Google into multiple entities. That kind of split would open up a whole lot of market share to the little guys trying to make names for themselves.
But even if Google stays just as it is, there’s still a chance for a tiny startup to get acquired and make serious profit off of an exit.
In other words… no matter what happens, there’s really never been a better time for startups to get off the ground.
The best thing to do right now is to hop on board with the companies leading the charge.
Today, I’ve got my eye on two companies with superstar track records and incredible growth potential for the next few years and beyond.
The first is a company that acquires and scales tech companies to provide outsized returns for their investors.
It’s basically a mini “shark tank” for the tech industry… and investors in this company are essentially getting in on multiple deals at once.
The second is a company that’s completely upending a $460 billion global engine industry. They’ve designed a piece of proprietary engine tech that’s unlike anything the world has ever seen before.
In my opinion, these two companies are potential future unicorns within the next year, and I’m breaking down these two deal recommendations that come straight from the independent research team during a Private Dealroom analysis meeting today.
I suggest you get in on this meeting quickly… because the doors are closing for good on October 27th at midnight.
That means that in just three days, you won’t be able to access any of this revolutionary information anymore.
I really don’t want you to miss out, so make sure you get all the details we are sharing now.
I’ll be back soon with another update. Have a great weekend!
Until next time,