So when two companies announce a partnership or merger, users do not ask what has changed. They ask what will actually change, and whether the product will behave differently when it matters.

That is why some deals land with excitement, and others with quiet unease. From the inside, mergers are framed as a strategy. Scale. Market access. Synergy. From the outside, they are interpreted as continuity until proven otherwise.

Products accumulate history through behaviour, not announcements. Through how issues are handled. Through how power is exercised when users have little leverage. Through what happens when something goes wrong.

This is why confidence does not reset when a deal is signed. It compounds. Recent fintech partnerships involving global and African platforms make this tension visible.

On paper, the logic is sound. Local distribution meets global infrastructure. Access expands. Yet user response is cautious. This is not cynicism. It is pattern recognition.

Many users remember years of limited access, sudden restrictions, slow dispute resolution, and unclear communication. A new partnership does not erase those experiences. It reactivates them. Leaders see a new chapter. Users see unresolved history.

Confidence is often treated as a marketing outcome. In practice, it behaves like a core product feature. It is built through predictability. Through clarity during failure. Through consistent behaviour under stress.

In digital finance, especially in emerging markets, unpredictability is expensive. Funds are not abstract. They are livelihoods. When a product fails silently, users do not forget.

Global experience reinforces this. Platforms that retained trust through regulatory tightening or market shocks did not do so because they avoided failure. They did so because they communicated early, clearly, and consistently. Those that struggled often had comparable technology. What differed was judgement.

Africa’s context amplifies this dynamic. Adoption is high and retail-driven. Trust in financial systems is fragile, shaped by currency volatility and limited recourse. Users become careful observers. They remember who showed up when things went wrong.

They remember who disappeared. This is why partnerships involving global brands can trigger discomfort rather than celebration. It is not resistance to progress. It is due diligence by experience. Mergers integrate systems. They align roadmaps. They do not transfer trust.

Trust belongs to the behaviour users have experienced over time. When a local platform partners with a global one, it does not inherit goodwill automatically. It also does not escape unresolved trust debt. In practice, the local brand often absorbs it. This is where leadership judgment matters most.

Traditional due diligence focuses on numbers, systems, and compliance. Rarely does it examine product memory. Yet the most consequential questions are simple.

How do users describe us when we are not present? Which past failures still shape perception? What pain was never fully acknowledged? Ignoring these questions does not remove risk. It delays it.

Confidence is not rebuilt through reassurance. It is rebuilt through behaviour. Leaders who understand this focus on consistency, not persuasion. They explain how behaviour will change, not just why the deal makes sense. They address past pain directly. They invest in response time, clarity, and human escalation.

Most importantly, they accept that confidence takes time to rebuild. There are no shortcuts.

A merger is not a moment of arrival. It is a moment of exposure. It reveals whether leadership understands its users or merely assumes them. Whether trust was earned or borrowed.

Strategy can change overnight, but product behaviour cannot. Users do not react to intent, they react to experience. You cannot out-announce memory. You cannot out-market past behaviour.

A merger is not a reset button, it is a mirror.

Emelia is the head of Product at FlashChange, a fintech platform redefining secure digital asset exchange. With a strong background in software testing and quality assurance, she has played a key role in shaping, building and delivering reliable financial products in emerging markets. Drawing on her testing expertise, she brings a quality-first mindset to product building. Emelia is passionate about trust-centered innovation and inclusive financial systems in Africa, and is a vocal advocate for technology that solves real problems and drives meaningful impact.

This comes nearly two months after Warner Bros rejected Paramount’s initial $30-a-share bid in favour of a deal to sell its streaming and studio businesses to Netflix.

Warner Bros’ board said Paramount has addressed many issues noted in previous offers. “To be clear, our Board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger,” Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav wrote in a letter to Paramount.

“We continue to recommend and remain fully committed to our transaction with Netflix.”

Warner Bros. Discovery Board Weighs Paramount’s Sweetened $30 Per Share Bid

Paramount has offered to increase its bid to $31 per share if Warner Bros agrees to open formal talks. The company has also provided a personal guarantee of $40 billion in equity from Oracle founder Larry Ellison, father of Paramount CEO David Ellison.

Warner Bros said it expects Paramount’s best and final offer to exceed that amount.

Paramount’s latest attempt to win over shareholders includes extra cash for each quarter the deal fails to close and covering the $2.8 billion breakup fee Warner Bros would owe Netflix if the merger falls through.

Despite these concessions, Warner Bros said Paramount’s offer still leaves important issues unresolved, including coverage of potential $1.5 billion junior lien financing fees and full certainty of equity funding.

The Netflix deal, which values Warner Bros’ studios and streaming assets at $82.7 billion, is still the board’s recommended option.

Shareholders are scheduled to vote on the merger on March 20, after Warner Bros spins off its Discovery Global cable operations into a separate public company.

Discovery Global includes CNN, TLC, Food Network, and HGTV and could fetch between $1.33 and $6.86 per share, according to Warner Bros estimates.

Paramount has also pushed to nominate directors to Warner Bros’ board, with Pentwater Capital CEO Matt Halbower among potential candidates. “Every substantive complaint that the Warner Bros board had with Paramount’s previous offer has been addressed,” Halbower said last week.

Activist investor Ancora Holdings, which owns nearly $200 million in Warner Bros shares, has urged the company to fully engage with Paramount’s proposal. Netflix, meanwhile, acknowledged the renewed talks but reaffirmed its confidence in the merger.

“While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics,” Netflix said.

Paramount Skydance’s market value stands at $11.1 billion, with shares trading around $10.32. Warner Bros Discovery’s market cap is roughly $69.4 billion, with shares at $27.99.

Netflix is by far larger at $324.6 billion, trading near $76.87. Analysts say this scale explains why the Netflix offer is seen as more stable despite its lower total dollar value.

The company is officially merging both platforms into a single unified system that will span phones, tablets, laptops, wearables, and foldables. Sameer Samat, Google’s president of Android ecosystem, said: “We’re going to be combining Chrome OS and Android into a single platform.”

The merger, formally announced on July 14, 2025, means ChromeOS will no longer stand as an independent operating system. Instead, Android will become the foundation across all Google-powered devices, designed to challenge Apple’s place in the tablet and productivity space.

Why now? Android 16, Google’s latest iteration, introduces several desktop-focused features: resizable windows, multi-window support, external display compatibility, and even Linux terminal integration. ChromeOS already shared Android’s Linux base, but now Google is rebuilding the entire system on the Android stack.

Google wants users to experience the same operating system whether they’re on a Pixel phone or a Pixel laptop, a prototype of which is reportedly undergoing internal testing. “I’m interested in how people are using their laptops these days,” Samat said, pointing at how much wider Android’s reach could become.

For users, this promises fewer compatibility issues and a consistent app experience across devices. Developers, on the other hand, are set to benefit from a unified toolchain and a larger Android user base, now expanded to include Chromebook users.

The strategic change also aligns with Google’s vision to embed AI into everyday productivity. Android’s merger with ChromeOS paves the way for Gemini-powered AI tools to run natively across phones, tablets, and laptops without fragmented software support.

Yet, the announcement leaves serious questions unanswered. Will the new Android-based platform retain ChromeOS’s automatic updates and robust security model? Will Android’s desktop mode feel genuinely native or simply like a stretched-out mobile experience? 

The fate of millions of existing Chromebooks, especially older Intel-based models, is also not clear. Will they receive updates or become obsolete overnight?

Though rumours of a merger date back to 2015, and even industry analysts at The Verge once called the move “perfect sense,” this is the first time Google has admitted publicly that it’s happening. 

However, history says Google doesn’t move fast when overhauling platforms, despite ChromeOS’s global market share collapsing to 1.25%, triggering urgent calls for change.

In short, Google’s two-headed OS experiment is over. Android is now the future, not just for mobile, but for everything.

Sources suggest that this collaboration could enhance their ability to compete with major industry players like Toyota, as well as EV giants such as Tesla and BYD.

The merger is still in its early discussion stages, and one possibility is that a new holding company could be formed to manage the merged operations.

In March, the two Japanese automakers agreed to explore a strategic partnership for electric vehicles.

Both firms responded to the BBC with identical statements, which said: “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.”

Many car brands are facing increasing competition as the industry transitions from petrol and diesel vehicles to electric ones, with production in China experiencing significant growth.

Honda and Nissan, Japan’s second and third largest car manufacturers behind Toyota, have been losing market share in China, which accounted for nearly 70% of global electric vehicle (EV) sales in November.

In 2023, the two brands combined for global sales of 7.4 million vehicles, but they are finding it difficult to compete with more affordable EV makers like BYD, which experienced a surge in quarterly revenues, surpassing Tesla’s for the first time in October.

Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but said it was “not something that has been announced by either company”.

“If there are any updates, we will inform our stakeholders at the appropriate time.”

The two companies agreed in March to cooperate in their EV businesses, and in August deepened their ties, agreeing to work together on batteries and other technology.

In August, the two companies also announced an agreement with Mitsubishi to discuss intelligence and electrification.

“The thought that some of these smaller players can survive and thrive is getting more challenging, especially when you add on the complexity of all the additional Chinese manufacturers who have come in and are competing quite strongly,” said Edmunds analyst Jessica Caldwell.

“It’s just sort of necessary to survive, not only to survive, but also just to afford the future.”

The past 12 months have seen a significant decline in venture capital (VC) funding in Africa. The total amount raised declined by almost 40% between July 2022 and June 2023 compared to the same period between 2021 and 2022.

This sharp decline is particularly evident in the “Big Four” markets of Nigeria, Egypt, South Africa, and Kenya, with funding contracting by as much as 77% in some.

Due to these challenging market conditions, numerous startups are nearing the end of their financial runway and are struggling to secure further investment.

Founders in this situation usually face three paths:

• Survival strategy: This entails major cutbacks and slower growth. This is only feasible for some startups.
• Shutting down: This involves ending operations and returning any remaining funds to investors.
• M&A route: Opting for a merger or acquisition.

Against this backdrop, mergers and acquisitions (M&A) may present a growing opportunity for African venture-backed startups.

As many companies face a contraction in funding, mergers and acquisitions can offer well-provisioned startups with a way to enhance their offering, expand their reach, and achieve greater scale.

Key drivers of M&A activity in VC

Several strategic and financial considerations power mergers and acquisitions within the startup ecosystem:

• Technological or product enhancements: Businesses often use acquisitions to boost their technical prowess or enrich their product catalogue. By acquiring startups with innovative technologies or unique products, businesses enrich their product catalogue and elevate their technological capability. Strategically, this move provides companies with a twofold advantage. First, it accelerates the time-to-market for technology, sidestepping the lengthy and expensive in-house development process. Second, the acquisition grants companies a competitive edge by hopefully giving them rights to protected intellectual property. In essence, acquisitions serve as a strategic shortcut for businesses to improve their technological standing and product offerings, ensuring they remain ahead of the curve.
• Talent acquisition: By acquiring a company primarily for its talent, more mature startups can access proven capability and teams that are experienced at building a startup. This immediate integration of a proficient team with pertinent skills ensures they can seamlessly transition into projects, potentially cutting down product or business launch timelines by months. Strategically, this not only grants the acquiring company access to scarce technical expertise but also provides insight into the invaluable knowledge held by these operators.
• Expanding market share (locally and regionally): Horizontal integration allows startups to absorb competitors, amplifying the firm’s market presence and reach. Moreover, regional expansion through M&A allows startups to access new consumers, tap into local insights and leverage pre-existing distribution channels. On the other hand, through vertical integration, a startup can streamline its operations by acquiring control over its supply chain, including suppliers or distributors. Strategically, this crafts a holistic ecosystem of offerings with potential synergies and propels immediate growth in sales revenue and customer base, facilitating accelerated market penetration.
• Opportunistic or distressed asset acquisitions: These acquisitions offer valuable assets at lower costs, equipping the acquiring company with strategic leverage. This is particularly beneficial with more asset-heavy type models.

Navigating the M&A landscape

Before diving into the M&A process, founders need to conduct a thorough market mapping exercise to identify potential targets that align with their strategic or financial objectives.

This involves assessing the competitive landscape, understanding the target’s value proposition, and evaluating growth potential.

Founders should consider the following factors during market mapping:

• Strategic fit and growth potential: A strong strategic fit ensures that the acquisition enhances the overall business and creates synergies. The growth trajectory and scalability of the target’s offering are also critical as they can enhance current growth by the acquirer.
• Market positioning: A startup with a unique selling proposition and a strong market presence may provide a significant advantage to the acquiring company.

The art of due diligence

Performing due diligence (DD) is critical to any M&A deal. This comprehensive review of the target company helps the acquiring company identify potential risks and opportunities linked to the transaction.

Some of the key due diligence areas are:

• Commercial DD: Founders should evaluate the target’s market position, customer base, and competitive advantage. Understand the target’s revenue streams and potential challenges in the market.
• Product DD (including growth strategies): Founders should assess the target’s products or services, their uniqueness, and how they fit into the acquirer’s product portfolio. In addition, it is important to assess the target’s growth metrics, customer acquisition strategies, and potential for future growth. Ultimately the point is to understand the factors driving or impeding growth.
• Legal and financial DD: Founders should review contracts, licences, intellectual property rights, and any legal issues that could impact the deal. In addition, it is critical to thoroughly examine the target’s financial statements, cash flow, profitability, and financial health, as well as identify any potential financial risks.

Structuring the deal

The deal structure plays a crucial role in M&A transactions. Founders should carefully consider how the deal is structured to ensure a successful outcome for both parties.

Common deal structures in the VC space include:

• Cash and/or shares: The consideration for the acquisition can be in the form of cash, equity, or a combination of both. An all-cash acquisition may result in a misalignment of long-term interests between the parties, whereas an all-share offer may be a challenge to get over the line.
• Upfront or earn-out: The payment can be made entirely upfront or partially upfront with deferred payments based on achieving certain milestones (earn-out). Earn-outs are particularly common when the target’s future performance is uncertain.
• Management incentives post-deal: To ensure a smooth integration, management teams of the acquired company may be offered incentives to stay and continue driving growth.

Bridging cultures, valuing teams

Following the deal’s closure, the integration phase involves merging two entities, and aligning processes, teams, and cultures. Careful attention to cultural alignment, talent retention, communication, and synergy realisation is paramount for the success of this endeavour.

M&A can breathe fresh life into startup ecosystem

The shifting landscape of African venture capital, marked by a decline in funding, necessitates a fresh look at the role of mergers and acquisitions. As more startups grapple with limited resources and financial uncertainty, M&A emerges as a viable path for growth, expansion, and innovation.

Whether the motivation is talent acquisition, technological enhancement, or market expansion, these deals can breathe new life into companies and fortify their position in a competitive market.

However, the path to a successful merger or acquisition is intricate and multifaceted. It’s not just about the numbers or assets — it’s about people, cultures, visions and.

For startups in Africa’s “Big Four” and beyond, embracing mergers and acquisitions could be the transformative move that paves the way for more sustainable businesses. But as with any significant venture, the key lies in strategy, diligence, and a clear understanding of the mutual value on offer.

You can learn more about Founders Factory Africa and how it supports Africa’s early-stage startups here.

[Featured Image Credit]

This strategic move is aimed at capitalizing on the growth potential in the wines and spirits segment of the brewing industry.

The proposal was officially communicated to Nigeria Exchange Limited through a notification signed by Uaboi Agbebaku, the company secretary.

Heineken Beverages Limited, the parent company of Distell International Limited, extended the offer to Nigerian Breweries Plc to acquire a majority interest in Distell Wines & Spirits Nigeria Limited.

The board of Nigerian Breweries Plc has resolved to carefully evaluate the offer, seeking guidance from external legal and financial advisors.

A decision will be reached in the coming weeks, and the outcome will be communicated accordingly, according to Agbebaku.

Distell Nigeria, established in 2018 and headquartered in Lagos, operates as a subsidiary of Distell International Limited, which is fully owned by Heineken Beverages. Distell International Limited currently holds an 80% stake in Distell Nigeria.

The company is involved in the local production of wines and ciders, as well as the importation of wines, spirits, and flavored alcoholic beverages from the Distell Group based in South Africa.

The brand portfolio of Distell Nigeria includes popular names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.

This acquisition will further solidify Nigerian Breweries Plc’s position as a leader in the brewing industry within the Nigerian manufacturing sector