Professional Documents
Culture Documents
Aimad Ahmad Harsh Patel Priyanka Lahoti Khushboo Lahoti Piyush Bachawat Alice Dash
Aimad Ahmad Harsh Patel Priyanka Lahoti Khushboo Lahoti Piyush Bachawat Alice Dash
operating system, cloud computing and artificial intelligence. So acquiring LinkedIn was part of this plan
The social-network firm has an enviable team of data scientists, a commodity coveted by tech firms. These boffins design
The firm gathers detailed information about its users, including their employment history, education and whom they
know. These data could prove valuable to Microsoft as it attempts to build offerings for managing relationships with
customers and to compete with Salesforce, a firm it reportedly tried to buy last year.
Salesforces current market value is around $55 billion. LinkedIn is a cheaper substitute. It will also dovetail with
Microsofts existing products in Office, its collection of business applications and services that includes Word, Excel and
DELL EMC
Established In November4, 1984 American multinational company
American Multinational Information Technology EMC is a global leader
Corporation.
Deliver information technology as a service
Sells And Supports Computers And Related Products
And Services It sells data storage, information security, analytics, etc.
Industry Leader In Personal Computers.
REASONS BEHIND THE DEAL CHALLENGES FACED
Both The Companies Had Fought Significant Battles
Debt.
With Activist Shareholders.
Leveraging EMC's sales force.
DELL
Simple nimble.
Change In The Voting Structure During Deal
Negotiations. Keeping up with changing
EMC demand
Called For Spinoff Of Vmware And Break Up Of Emcs
Federations.
ACQUISITION OF WHATSAPP BY FACEBOOK
The price was $4 billion in cash, $12 billion in stock (8.5% of Facebooks stock) plus $3 billion in
restricted shares. This adds up to a staggering $19 billion dollars.
REASONS WHY WHATSAPP IS A STEAL FOR
FACEBOOK
THE TARGET IS REACHING 5.6 BILLION SMARTPHONE USERS BY 2019
THE MAJOR GROWTH WILL BE IN EMERGING ECONOMIES, WHERE WHATSAPP IS WELL-
ESTABLISHED
THE DEAL PRE-EMPTS ASIAN MESSAGING APPS FROM CLOSING FACEBOOK OUT OF THE
EMERGING NATIONS
THESE BRANDS ARE DIVERSIFYING FACEBOOK GROUP AND ITS REVENUES
WhatsApp was founded in 2009 and already it acquired 450 million users, which is three times more than
Facebook had acquired in the same period of time. Facebook paid $19 billion for 450 million users, which is
$42.22 dollar per user
DEALS B/W FACEBOOK AND WHATSAPP
FACEBOOK ACQUIRED WHICH HAD STARTED BY JAN KOUM AND BRIAN ACTON FIVE YEARS
AGO FOR $19 BILLION
KOUM STILL HAD AROUND 45% AT THE TIME OF THE DEAL IN WHATSAPP
WHATSAPP FOUNDER JAN KOUM NOW GETS A SEAT ON THE FACEBOOK BOARD AND WILL
MATCH ZUCKERBERGS $1 SALARY
THE PROCTER & GAMBLE (P&G)-GILLETTE MERGER
PROCTER & GAMBLE (P&G)
THE P&G COMPANY, IS A WORLDWIDE MANUFACTURER AND MARKETER OF A WIDE VARIETY OF
CONSUMER GOODS.
IT OPERATES IN FIVE SEGMENTS: BEAUTY, HEALTH CARE, BABY CARE AND FAMILY CARE, FABRIC
CARE AND HOME CARE, AND SNACKS AND COFFEE.
GILLETTE
THE GILLETTE COMPANY INC. MANUFACTURES AND SELLS SHAVING SYSTEMS FOR MEN.
IN 1984 IT TOOK ORAL B THE COMPANY OF TOOTHBRUSH AND MOUTH CARE.
IN 1996 IT TOOK OVER DURACELL THE COMPANY OF BIG BATTERIES.
REASONS BEHIND P&GS DECISION TO ACQUIRE
GILLETTE
GILLETTES CORE CUSTOMER SEGMENT WAS MEN WHEREAS, P&G WAS SKILLED IN MARKETING
THEIR PRODUCT TO WOMEN.
WHILE P&GS STRENGTH LAY IN WOMENS PERSONAL CARE PRODUCTS, AND GILLETTES
STRENGTH LAY IN MENS GROOMING CATEGORY WHICH WOULD ADD TO ITS PORTFOLIO.
GILLETTE WAS STRONG IN EMERGING MARKETS LIKE INDIA AND BRAZIL WHERE P&G HAD
ALWAYS BEEN OUTPERFORMED BY UNILEVER.
P&G AND GILLETTE WERE HIGHLY COMPLEMENTARY BRAND, MARKETS AND TECHNOLOGIES.
P&G WOULD HAVE 21 BRANDS WITH MORE THAN $1 BILLION IN ANNUAL SALES EACH.
SYNERGY ARISING FROM P&G AND GILLETTE
THE ACQUISITION OF THESE TWO SUCCESSFUL FIRMS
HAS A MARKETING RATIONALE:
P&G: $5.5 BILLION
GILLETTE: $ BILLION
Value of P&G(Standalone): 1,28,972
WHEN COMBINED WILL GIVE FIRMS MORE POWER TO
NEGOTIATE DEALS WITH MEDIA COMPANIES.
Value of Gillette (Standalone): 29,470
Value of combined firm= $1,58,442
THE DEAL WOULD GIVE THEM EVEN MORE CONTROL
OVER SHELF SPACE OF RETAIL AND GROCERY STORES.
This would be the value of the combined firm
in the absence of synergy
P&G WILL OPEN DOORS FOR GILLETTE IN MARKETS
SUCH AS CHINA AND JAPAN WHILE, GILLETTE WILL
BRING P&G PRODUCT SEGMENTS WHICH WERE
GROWING FASTER THAN THE COMPANYS OVERALL
PORTFOLIO OF PRODUCTS.
Value of combined firm with
BOTH THE COMPANIES ARE FOCUSED ON THE synergy: $1,63,912 millions
CONSUMERS AND CONTINUALLY TRY TO MAKE
IMPROVEMENTS. THIS WILL HELP IN OVERCOMING
Value of synergy=$ 5470 million.
MANAGERIAL INEFFICIENCIES.
DEAL
Myntra Flipkart
No. of registered users 8million 18million