Mergers & Acquisitions: The Case of Microsoft and Nokia Luís Franco Hilário Advisor: Peter Tsvetkov Dissertation submitted in partial fulfillment of requirements for the degrees of MSc in Business Administration, at the Universidade Católica Portuguesa SEPTEMBER 2011 1 Abstract Due to the financial downturn and the emergence of new devices in the global handset market has led companies to change their business strategies. Indeed, Mergers and Acquisition are considered one of the best strategies to increase shareholder value despite its hardship to be well-implemented. For this reason, a consolidation between Microsoft and Nokia may create new opportunities to challenge the market. Thereby, the focus of this …show more content…
28 2.3. Conclusion..................................................................................................................................... 30 3. INDUSTRY AND COMPANY ANALYSIS ....................................................................31 3.1. Overview of the Global Mobile Industry ....................................................................................... 31 3.1.1. Current Market Trend – “The emergence of the tablets” ......................................................... 37 3.1.2. Technology market growth opportunities in Asian economies ................................................. 38 3.2 Microsoft Corporation.................................................................................................................... 39 3.2.1. Windows and Windows Live Division ...................................................................................... 42 3.2.2. Server and Tools ..................................................................................................................... 43 3.2.3. Online Services Division .......................................................................................................... 45 3.2.4. Microsoft Business Division ..................................................................................................... 46 3.2.5. Entertainment and Devices Division
Emmy Amalie Noether was a German mathematician known for her knowledge of abstract algebra and theoretical physics. Emmy Noether was born in Erlangen, Germany on March 23, 1882. She was named Amalie, but always called "Emmy". She was the eldest of four children, but one of only two that survived childhood. Her brother, Fritz also made a career of mathematics. Her father was Max Noether, a noted mathematician of his time. Her mother was Ida Amalie, for whom Emmy was named. She grew up attending finishing school and learning the arts necessary to be learned by a middle class young girl. Young girls were not allowed to attend college preparatory schools. In 1900 she was certified to teach English and French within the school systems. However,
* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.
The telecommunication industry that AT&T essentially created has undergone radical advancements, particularly within the last decade. According to the IBM Institute for Business Value, approximately 15% of the world’s population had access to a telephone in 1999 but by 2009, 70% of the world’s population had mobile phone subscriptions (Nelson & van den Dam, 2010). Given the extraordinary explosion of mobile computing and wireless communications, continued advancements within the global telecommunication industry are certain. A number of trends drive this evolution including the advancement of devices and network access technology, changes
The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).
Comcast’s acquisition of NBCUniversal has proved to be a great strength for the company’s operations. Comcast initially acquired a 51 percent stake of NBCUniversal in 2009. In addition to paying GE over $6.5 billion in cash, Comcast contributed about $7.25 billion worth of assets to the joint venture. Falling under its former business called Comcast Content, these assets included several regional sports networks, as well as popular cable channels such as E!, Versus, and the Golf Channel. In 2013, Comcast purchased the remaining 49 percent stake from General Electric for $16.7 billion. A separate deal also allowed Comcast to gain control of NBCU’s New York City headquarters at 30 Rockefeller Center, as well as CNBC’s headquarters in New Jersey (“How Comcast Stole,” 2013). Throughout the process of this large acquisition, Comcast prudently followed many regulatory conditions and promised that it would not abuse its power and position.
As such, The particular consideration in the advertising plus the imagination in the general public include grabbed by it. During the last few years,Cell phone devices have received dramatical increase as well as there are at present close to a pair of billion dollars usersworld-wide. Indeed, in many formulated countries, cellular phones are getting to be an essential company deviceas well as a part of everyday life, as well as in many creating countries, cellular phones tend to be easily supplantingantiquated wireline
- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently
The purposes of this report are to (1) address the problems Sprint and Nextel incurred before the merger, (2) discuss
Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.
There are several factors that are important to examine in the Microsoft-Nokia negotiation. The first factor is that this was a cross-cultural negotiation because Microsoft is an American company, while Nokia is a Finnish company. Both countries have very different values, so it was extremely important for representatives from both companies to understand each other’s cultures before the negotiations began.
In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set.
Mobile phones can be seen to only start taking shape in 1996 but when they are introduced they soar above any other form of technology. They end up in 20098 to having 60 handsets per 1000 people which is a huge amount. This is due to the cheap costs that are present and they are affordable to the people which there low wages. Many companies such as Nokia have seen a mobile phone market available in developing countries and they cause a lot more people to get hold of them. The developing countries see how much of a difference they make to life and spread the word and soon a lot of people are in possession. Unlike landlines there is only one satellite dish that is needed and these can be place almost any where meaning they don’t take up a lot of time and money. The running costs are low as usually the spare parts may be made in the developing countries and easy ways of keeping them charged are available such as using the sun. The fact that many people have them makes business easier which attracts more people to have them making them very popular compared to the land line. It is the fact that they are very simple and cheap that there are so many being used in the developing world compared to the internet and land
This paper examines the nature of monopolies and the anti-trust policies developed by the government to discourage them. It specifically considers Microsoft and the case brought against it by the Federal government to prevent its becoming a software monopoly. In many cases, the government is justified in pursuing such anti-monopoly policies to protect competition and by extension the consumer. There are some instances, however, when allowing certain monopolies ensures constant supply, efficient production, and consistent regulation of products vital to the public good.
The nature of change being witnessed in the contemporary business environment has made mergers and acquisitions a common feature. In the context of mergers, some two or more companies engage in negotiations and start to operate as a single entity. On the other hand, in acquisitions, one large firm acquires a smaller company. While on paper, these two components, both mergers, and acquisitions, may appear straightforward; the gist of the issue is that there is significant complexity associated with both measures.
Cellphones began as simple single purpose devices that had long-term user sustainability due to relatively infrequent large-scale technology changes. There was no incentive to purchase a new unit until the customers current unit had reached a point where it could no longer be repaired.