Mergers & Acquisitions: The Case of Microsoft and Nokia Essay

23815 Words Dec 16th, 2013 96 Pages
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
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49
3.3.1. Devices & Services .................................................................................................................. 52
3.3.2. NAVTEQ.................................................................................................................................. 53
3.3.3. Nokia Siemens Networks ........................................................................................................ 54

4. PERFORMANCE OF BOTH COMPANIES IN THE STOCK MARKET ....................56
5. HISTORICAL OF M&A – “A ROUTE FOR PORTFOLIO DIVERSIFICATION” .....57
4

6. PERFORMANCE FORECAST .......................................................................................60
6.1. Microsoft’s Standalone Valuation – Base case scenario ................................................................ 60
6.1.1. Revenues ................................................................................................................................ 61
6.1.1.1. Windows & Windows Live Division................................................................................... 61
6.1.1.2. Microsoft Business Division.............................................................................................. 62
6.1.1.3. Server and Tools .............................................................................................................. 62
6.1.1.4.

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