Monday, May 7, 2007

REVENUE STRATEGY - MICROSOFT

1. Microsoft is angling for a big fish in the online market and has been ramping up its ability to absorb large targets. It is willing to spend more on purchases.
2. It had considered buying Yahoo or striking up another kind of partnership with the Internet company, but that talks had stalled. The companies had last considered a tie-up in 2006.
3. It has been investing in financial, human resources, and IT systems can track on a daily basis how an acquisition is performing and generate reports to get newly acquired teams up to speed quicker once inside Microsoft.
4. It wants to find a way to accelerate the growth of business in consumer online both through acquisitions and in-house development.
5. Microsoft plans to pursue deals that can bolster its presence in Web searches for specific areas of expertise, along the lines of the acquisition of Medstory, which lets consumers winnow down searches for online health information.
6. The company also wants to do deals that can help it make money from its MSN properties Hotmail and Windows Messenger.
7. It has acquired roughly 150 companies since 1990.

Will an inorganic merger of Microsoft and Yahoo without a killer new product ever draw away the gathering gang of Googlers?

Will such mergers not cannibalize each other to give: sum not greater than the parts?

[Click here for full story at: BUSINESSWEEK.COM]

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