group9sectionbmaprojectmicrosoft-skype-130904160621-.pdf

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Group 9 Soumyajit Sengupta 12P171 Aneesha Chandra 12P186 Arunabh Thakur 12P190 Karthik Kollipalli 12P204 Mergers & Acquisitions, Section B A POSSIBLE SUCCESS STORY IN THE MAKING Microsoft‟s Acquisition of Skype
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CASE BACKGROUND
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Technology Industry Scenario 2010-11 : The Recovery Era Period of Recovery - Renewed Optimism and Strengthening balance sheets Increasing spending on IT products and services Consumers expected to spend $2.1 trillion on technology products and services worldwide Key Trends Consolidation ( Expansion into new technology, Industry and Geographies) Licensed Software(SaaS) Virtualisation (VoIP) Top 13 deals ($1 billion +) of the top 100 global technology companies, full-year 2010 Opportunities Cloud Services Security products and services Healthcare IT markets Virtualization products and services Mobile services (expected to generate 37% of total worldwide consumer technology spending in 2012) Entertainment Services Tech Market Factors: Economic Growth Versus New Tech Adoption By Country
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VoIP Industry Scenario 2010-11 : Fastest growing Industry in U.S Growth of 12.6% in 2010 Industry expected to grow by 16-17% in the next 5 years Key Drivers Cost Savings and Greater efficiencies Increasing Global Network and Wireless bandwidth capabilities (3G) Increased adoption by China, Japan, South Korea VoIP aligning with cost cutting strategy of firms post recession Expanding SMB and enterprise offerings. VoIP, video conferencing and real-time communication capabilities Key Trends Strategic Collaboration & Integration Hardware Providers (Avaya , Verizon with Skype) Technology (Facebook with Skype) Mobile Operators (KDDI Japan with Skype) Technology Compatibility (Ex: Skype for Android) M&A on the rise Challenges Regulatory Compliance (Open Internet Access) Quality and Reliability of VoIP services Free Business Models Announcement Date Acquirer Target Company Feb-10 Comcast New Global Telecom May-10 Google, Inc. Global IP Solutions, Inc. Oct-10 ShoreTel Agito Networks Nov-10 M5 Networks Geckotech Nov-10 Cbeyond, Inc. Aretta Communications Apr-11 M5 Networks Callfinity Apr-11 West Corporation Smoothstone IP May-11 Microsoft Skype Jun-11 USAN, Inc. Interactive Softworks, Inc. Jul-11 Interactive Intelligence CallTime Solutions Sep-11 8x8 Inc. Contactual Inc. Sep-11 Broadsoft iLinc Communications Oct-11 Avaya, Inc. Sipera Systems, Inc Dec-11 Stage 2 Networks hosted division of CTI Dec-11 Warwick Valley Telephone Alteva
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Microsoft Company Profile Company Overview Incorporated on September 22, 1993 Involved in developing, supporting and licensing an array of software products and services Also works to design and sell hardware, and it delivers online ads to the customers Number of employees: 90000 Full Time 54000 US and 36000 International 35000 Product research, 250000 Sales and Marketing, 16000 product support, 5000 manufacturing VISION To help people and businesses throughout the world to realize their full potential Key Divisions Windows and Windows Live
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  • Spring '18
  • surjith reddy

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