The Lady Gaga Strategy in M&A

The best time for a company to consider M&A often is when there seems to be the least need to do so.

To make the point with an offbeat analogy, let’s consider the careers of two pop superstars:  Madonna Louise Veronica Ciccone and Stefani Joanne Angelina Germanotta (Lady Gaga).

Older by a quarter of a century, Madonna hit her stride in the mid-1980s, just about the time that Lady Gaga was born.  By 2007 Madonna had spent years as the reigning “Queen of Pop” music.  That year she left Warner Bros. Records, signed an unprecedented $120 million ten-year contract with Live Nation, and kicked off her....

So here's the question: What if, at her peak of success, Madonna’s growth strategy had been to acquire Lady Gaga, the hottest breakout artist in 2008? 

Lady Gaga burst into the big time with her debut album The Fame in 2008.  Another girl with Italian-Catholic roots, she gained stardom with artistic strategy and tactics that closely mirrored Madonna’s:  powerful sexuality, provocative staging, elaborate costuming, and suggestive lyrics. 

Also like Madonna,

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