Priyanka Lahoti

Aimad Ahmad Khushboo Lahoti

Harsh Patel Piyush Bachawat
Alice Dash
 Microsoft LinkedIn
Microsoft acquired LinkedIn for $196 per share (a premium of 50%) in an all-
cash transaction valued at $26.2 billion, inclusive of LinkedIns net cash
The deal is the third-largest acquisition in the technology industry
The deal also has cost synergies worth $150 million and will have a minimal
negative impactabout 1%on adjusted earnings for its fiscal 2017 and 2018
years
This acquisition also falls in line with Microsofts strategy of bolstering its
cloud business and countering the threat of rising Chrome book sales, which is
cannibalizing sales of Windows-based PCs
LinkedIn is neither part of Microsofts supply chain, nor is it a firm with strong
or even positive profit margins. It is not a competitor Microsoft can acquire to
achieve market hegemony, as it has in the past.
The acquisition of LinkedIn depends on synergies to succeed. Specifically,
Microsoft needs to sell Office 365 to LinkedIn members, and use its new data
on them to improve its other services
 The deal b/w Microsoft and LinkedIn
Mr Nandellas grand scheme to reposition Microsoft, involves less putting emphasis on windows, the firms flagship

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

algorithms to find patterns in big piles of digital information

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

Outlook, an e-mail system

 DELLS ACQUISITION OF EMC

DELL
Established In November4, 1984
American Multinational Information Technology
Corporation.
Sells And Supports Computers And Related Products
And Services
Industry Leader In Personal Computers.
EMC
American multinational company
EMC is a global leader
Deliver information technology as a service
It sells data storage, information security, analytics, etc.
 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

Facebook has wrapped up its landmark $19 billion acquisition of WhatsApp

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

P&G EMPLOYS A WORKFORCE OF 1,10,000 WORLDWIDE AND HAS A MARKET CAPITALIZATION

OF $141 BILLION. GILLETTE EMPLOYS 29,400 EMPLOYEES WORLDWIDE AND HAS A MARKET
CAPITALIZATION OF $45 BILLION.
THE TRANSACTION WAS VALUED AT $57 BILLION BASED ON CLOSING NYSE STOCK PRICES OF
JANUARY 27, 2005.
P&G PAID 0.975 FOR EACH SHARE OF GILLETTE VALUING THE ACQUISITION AT A 20% PREMIUM
TO SHAREHOLDERS OF GILLETTE.
P&G PROMISED TO BUYBACK ITS SHARES WORTH $18-$22 BILLION
P&G PAID GILLETTE 40% IN CASH AND THE REST 60% IN STOCK.
 BENEFITS AFTER THE ACQUISITION
MOST OF GILLETTES SENIOR MANAGERS HAD LEFT THE COMPANY.
P&GS STOCK LAGGED BEHIND KEY COMPETITORS INCLUDING COLGATE-PALMOLIVE CO. AND
UNILEVER.
P&GS STOCK WAS UP 12% SINCE THE DAY BEFORE THE DEAL WAS ANNOUNCED IN 2005 BUT
DOWN 8% OVER THE SAME PERIOD.
HOWEVER, THE DEAL WAS A RIGHT STEP, AT THE RIGHT TIME AND WITH THE RIGHT PARTNER.
 MICROSOFT ACQUIRES SKYPE
SKYPE- MICROSOFTS BIGGEST EVER ACQUISITION AT $8.56 BILLION
A BIG MOVE INTO THE IP COMMUNICATIONS SPACE, HUGE AUDIENCE AND
ITS PEER-TO-PEER VIDEO CHAT.
BUT THE DEAL DOES NOT SIGNAL A MAJOR SHIFT IN MICROSOFT'S M&A
STRATEGY
BUT THERES POSSIBILITY OF UPFRONT PROFITS IN FUTURE YEARS OF SKYPE
 REASONS
PROBLEMS MONETISING IT
DIFFICULTIES INTEGRATING IT INTO OTHER MICROSOFT PRODUCTS AND
DIVISIONS
BEING PEER-TO-PEER, IT'S INHERENTLY UNRELIABLE; NOT A GOOD FIT FOR
MICROSOFT, WHICH BIG BUSINESSES RELY ON
MICROSOFT ALREADY HAD TWO VOIP OFFERINGS
 MYNTRA + FLIPKART
Flipkarts Reason
Wanted Apparel Products Specialization, Deeper Understanding Of
Fashion, Aesthetic Presentation And Experience.
Fashion Products To Become The Most Popular Category In The Near
Future.
Myntras Reason
To Have A Stronger Distribution Network.
To Foray Into The Mobile Platform
To Increase Warehouse Capacity By 4 Times
 Myntra Has Started Offering 30-40% Discount After The Infusion.
Simple Strategy Combine To Two Entities -Get A Market Share A 50% -
Keeping The Functionality Separate, Take It To 60%

Myntra Flipkart
No. of registered users 8million 18million

No. of products on stock 60,000 10 million books

Annualized revenues 1,200crores(approx.) 3,355crores(approx.)
Myntra attained 45% of market share in fashion lines.
The combination added 600 brands making effective sales 1.5billionUSD
 OBSERVATION AND ANALYSIS
After The Merger Of Flipkart And Myntra In May 2014 There Has Been A
Reason To Cheer By The Stake Holders.
The Number Of Registered Users Have Increased By 30.7%, Daily Visits By
32.6%, The Number Of Sellers On The Platform By 3.2% And Team Strength
Has Increased By 16.6%.
The Revenue Of The Company After Merger Has Soared To 1.5 Billion USD.
However, The Financials Of The Company As A Whole After Merger Doesnt
Seems To Be Promising. PAT For The Company As Per 2015 Is 836.51 Cr
Whereas The Revenues Have Crossed 1 Billion USD Mark.