Business Merger Between Lenovo And Motorola Mobility

For calculations of the acquisition price, the P/E is taken to be 8.6. The acquisition price is calculated by multiplying this value with the historical average of net income. Thus, the acquisition price comes out to be $186,215,800, which is $189,186,673 less than the enterprise value.

In the 1980s, Motorola was the major supplier in consumer market cellular telephone and pager systems. In the 1990s, Motorola was the number one of mobile sales. Today, “Motorola is a major player in a fierce electronic revolution of global dimension.” (Entrepreneur Media, 2011, p.1 ) .

Motorola has strong brand name in telecommunication market. It has well known in developed countries and being established in developing countries as well.

In 1990 Motorola’s annual revenues were of the tune of 11 billion under the leadership of Bob Galvin and was raked in the top 50 companies of all times. It was the first company to develop Lean Six Sigma processes to deal with the onslaught of Japanese companies. Also by 1994 almost 60% of the phones sold in USA were Motorola’s. It was also amongst the first few companies to begin production in China, but it did have to face the issue of training the

Based on the outlook by Verizon Communications, Inc. in their 2010 Annual Report, the investing that they do will increase the infrastructure in their telecommunication networks. Not only does the data show an increase in the national market, but there is an indication that investing globally will also increase the capabilities of Verizon’s telecommunications. The outcome shows that the investing potential is in Verizon’s favor.

The Office Supply Stores industry has faced tough conditions during the past five years. Although the recession accelerated the industry's decline, traditional office supply stores have long been under pressure from the changing digital landscape and fierce external competition. The value of the industry reached $15 billion in 2015. It had an annual growth of 5.5% in 2011-2015.

In a recent article by the Washington Post, Charter has recently acquired the rights to Time Warner Cable (TWC) in a $55 billion dollar deal (Kang). This comes a few weeks after Comcast, a close competitor withdrew it’s own merger deal after a potential. The article states that the merger between Charter and TWC creates a viable competitor to Comcast which currently has 40 percent of all broadband internet subscribers. With the merger the article states that the company New Charter, would have a 35 percent share of the current broadband market, compared to Comcast which would have had more than 50 percent.

Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction.

Current market prices: Both McCaw and AT&T’s common shares are publicly traded. The market value of the equity can be summed with the book value of debt to give a rough estimate of the firm’s current value. The calculation that follows suggests a value for McCaw’s assets of about $10.5 billion. McCaw’s shares may be trading at a minority discount, because the CEO holds a controlling block of shares. To purchase a partial

This memo will outline the reasons why Motorola’s fundamentals are strong and why PricewaterhouseCoopers should consider their investment opportunity.

Due to the financial downturn and the emergence of new devices in the global handset

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

Over the past five years, IBM has quietly transformed itself into a "software, solution and services" company. With the transformation from a hardware vendor to a solution provider, it has entered the area of consulting services.

Motorola is a global communications leader that is divided into six business units: semiconductor products sector (SPS), broadband communications sector (BCS), integrated electronic systems sector (IESS), commercial, government and industrial solutions sector (CGISS), global telecom solutions sector (GTS), and the personal communications sector (PCS). Motorola was formed in the late 1920’s by two brothers; Paul and Joseph Galvin, since that time the company has undergone numerous changes. Today they are located in about 70 countries and are still one of the top electronic manufacturers.

During the first quarter of 2010 Motorola has announce its latest strategic plan according to sources cited by the Wall Street Journal, Motorola has paused efforts to sell its home-and-networks mobility unit, which makes cable boxes and other gear. Two reasons factor into Motorola's thinking, say the Journal's sources. The first is that handset sales have increased in recent months (due to the popularity of devices such as the Droid), and that has the company believing that it might survive as one entity. The other reason is that the bids for the unit have been lower than Motorola hoped. Motorola believed it could fetch between $4 and $5 billion for the set-top-box division, but has seen bids in the $3 to $4 billion range. The next round of bids are due in mid February, but it is unclear if Motorola will accept them. Motorola's board is planning to meet to discuss how to proceed. I feel if the market research and sales indicate its time to end the business of cable box manufacturing then I supports Motorola latest strategic plan and use the resources and invest it in future products.