Tag Archives: acquisition

Microsoft casts a bigger net around Nokia, acquires its business and patents

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In 2011, Microsoft and Nokia entered into a “strategic alliance” that formally made Windows Phone Nokia’s “principal smartphone strategy.” Two years later, Microsoft is acquiring “substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.” MSFT is ponying up 5.44 billion euros (or $7.2 billion) to gobble up virtually all that is Nokia: 3.79 billion euros ($4.99 billion) grants Microsoft Nokia’s business and another 1.65 billion euros ($2.18 billion) allows the Windows company access to Nokia’s patents.

Says Microsoft CEO Steve Ballmer (pictured above, left): “It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”

It makes sense–Nokia has been hard at work pushing the Windows Phone mobile OS with their lineup of Lumia smartphones. Once this acquisition completes (it’s expected to sometime in 2014) their strategic alliance will grow into a full-blown marriage and the synergy between the two companies should result in a more streamlined product and services lineup.

Nokia’s CEO Stephen Elop (pictured above, right) has stepped down from his post and is currently being vetted to take over as Microsoft’s head honcho when Ballmer exits next year.

[Via Engadget 1, 2; Nokia]

Disney acquires Lucasfilm Ltd., ‘Star Wars’ universe to expand in future films

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Hold on to your lightsabers. The house of Mouse is acquiring Geroge Lucas’ production company. In a deal that went down today, The Walt Disney Company agreed to acquire Lucasfilm Ltd. in a stock and cash transaction valued at $4.05 billion. In addition to acquiring Lucasfilm and all of its operating businesses including LucasArts, Industrial Light & Magic, and Skywalker Sound, Disney now also owns the rights to popular franchises like Indiana Jones and Star Wars.

In fact, what really shook people today is that Disney already has plans to expand the Star Wars universe by producing at least three more films in the saga. Kathleen Kennedy from Lucasfilm will transition into becoming the President of Lucasfilm and will report to Walt Disney Studios Chairman Alan Horn; at her post she will serve as brand manager for Star Wars and executive producer of future Star Wars films. Star Wars Episode 7 is being targeted with a 2015 release. Disney CEO and Chairman Robert Iger lays out the framework: “In 2015, we’re planning to release Star Wars Episode 7 – the first feature film under the “Disney-Lucasfilm” brand. That will be followed by Episodes 8 and 9 – and our long term plan is to release a new Star Wars feature film every two to three years.” In addition handpicking Kennedy to run Lucasfilm under Disney, Star Wars creator George Lucas will serve as creative consultant on future films.

In a press release, Lucas discussed his decision to sell his production company and how important it is to him that Star Wars continues on into the future. “For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next. It’s now time for me to pass Star Wars on to a new generation of filmmakers. I’ve always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime. I’m confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney’s reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products.”

Production on Episode 7 is already in the early stages. Kennedy and Lucas are sitting down with writers and discussing the direction they want Star Wars to go next. Jump after the break to hear what they have to say on the matter.

Instant reactions to the news on Twitter are mixed. Some say they feel betrayed by Lucas for letting his prized franchise fall into different hands. Others express their sheer excitement and think it’s about time the franchise was injected with fresh ideas from new filmmakers. No matter where you stand, Disney’s purchase of Lucasfilm Ltd. is huge news–from the development of new propertied media to merchandising new collectable products–and the acquisition is sure conjure up major fanfare in the weeks, months, and years ahead.

[Via Disney] Continue reading Disney acquires Lucasfilm Ltd., ‘Star Wars’ universe to expand in future films →

AT&T to acquire T-Mobile USA for $39 billion …NOT

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The first half of this post’s title was a major announcement back in March. Almost exactly nine months after news broke that AT&T would eat up T-Mobile to become a giant force against competitors Verizon Wireless and Sprint, Ma Bell has decided to end its bid to acquire T-Mobile USA. In a press release, AT&T blames the Federal Communications Commission and the Department of Justice for blocking the transaction from happening. Over the past few months, the FCC and the DOJ have been making it difficult for AT&T to buy out T-Mobile. Why you ask? I’ll let competitor Sprint express their viewpoint on the matter:

“From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.”

In other words, with T-Mobile gone consumers would have a limited selection choosing a wireless carrier and this would impede competition and lead to lower expectations when it comes to innovation. AT&T sees things differently:

The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.

Since Ma Bell wasn’t able to carry through with its acquisition as planned, the company must pay Deutsche Telekom (T-Mobile USA’s German-based parent company) $4 billion before year’s end. Also, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom. For more pop after the break to read the PR.

[Via Engadget] Continue reading AT&T to acquire T-Mobile USA for $39 billion …NOT →

Napster joins Rhapsody and the peer-to-peer giant vanishes for good

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Oh, Napster’s journey has been a rough one when you look down at the history of the famed peer-to-peer music sharing service from Justin Timberlake Sean Parker. In 1999 Napster became widely available and widely known as the destination to illegally download and share music among  friends and strangers around the world. It wasn’t long before the Recording Industry Association of America (with resistance led by heavy metal band Metallica) forced Parker to shut down Napster so the company could find a way to make it work through legal channels. While Napster was getting battered with legal woes, other P2P music software cropped up like Morpheus, Kazaa, and BearShare. Eventually all of these P2P players were forced to either close up shop or transition into a subscription service. Napster took the latter route and lived on for a while. Late last week, though, the final hammer was nailed into the coffin. Rhapsody, the world’s #1 digital music subscription service, bought out Napster and integrated its music library into its own. In other words, Napster is no longer its own entity and the Napster name and cute logo that lasted all this time have fallen by the wayside.

Napster’s legacy will forever remain a part of the history of the music industry. What Parker pioneered in the late 90s and early 2000s would help lead to the introduction of the iTunes Store and new, innovative ways of legally purchasing and sharing music. And with that let us say in unison: RIP Napster.

Update: And the Internet cried, “Not so fast!” According to The Register, the Napster brand will live on in the UK and Germany. So there you go.

[Via CNET]

Google buys Motorola Mobility for $12.5 billion

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In an interesting move, superpower Google bought the consumer-oriented arm of Motorola known as Motorola Mobility for a cool $12.5 billion (at a price of $40 per share) on Monday. In a press release the pending acquisition is explained:

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Google CEO Larry Page says, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

This is a huge move made by Google. Like Microsoft and Nokia, Google and Motorola are going to take advantage of their partnership by harnessing the power of Android software and the might of Moto’s hardware to create amazing products for consumers. Keep in mind that the Mobility division goes beyond smartphones and also includes other consumer devices like set top boxes; no doubt Google will work with Motorola to ensure the growth of products like Google TV. And on the business end of things, the acquisition “will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies,” says Page.

As the acquisition takes hold, a few questions remain. What will happen to Moto’s custom Android skin called MotoBlur? Will all future handsets built by Moto come loaded with the latest version of plain vanilla Android? Will the next Nexus phone come from Goog’s new partner? Time will tell.

One thing’s for certain: even though Google and Moto are tied to one another, the Android platform remains open for all hardware manufacturers to utilize; healthy competition is here to stay. Full PR after the break.

[Via GoogleBlog] Continue reading Google buys Motorola Mobility for $12.5 billion →

Microsoft scoops up Skype

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Skype, the ubiquitous video chat client, is now owned by the makers of Windows. Microsoft acquired Skype this week; it cost them a whopping $8.5 billion in cash to finalize the deal. According to the official press release:

The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.

But what does this mean for you? Microsoft says Skype will come to support Xbox and Kinect, Windows Phone and a wide array of Windows devices and will connect Skype users with Lync, Outlook, Xbox Live and other communities. Communication across these Microsoft products and services is about to get a whole lot better and mainstreamed, so long as CEO Steve Ballmer and co. don’t screw things up. And don’t worry about losing your current Skype experience you’re accustomed to. The press release goes on to state that “Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.”

Effective immediately Skype is a new business division within Microsoft, Skype CEO Tony Bates is now president of said division and he will report directly to Ballmer. Full PR after the break.

[Via Engadget] Continue reading Microsoft scoops up Skype →

AT&T to acquire T-Mobile USA for $39 billion

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Well here’s some interesting Sunday news for you. This afternoon AT&T announced a definitive agreement with Deutsche Telekom (T-Mobile USA’s German-based parent company) under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction valued at $39 billion. Should this deal go through, it will bring together T-Mobile’s current subscriber base of 33 million and AT&T’s 95 million customers thus making Ma Bell the largest wireless provider in the United States (for comparison’s sake, Verizon has 94 million customers). Furthermore, it will situate AT&T as the sole GSM provider to compete against CDMA rivals Verizon Wireless and Sprint. As far as 4G connectivity is concerned, AT&T plans to take advantage of T-Mobile’s installed infrastructure to significantly expand 4G LTE deployment to 95 percent of the U.S. population–reaching an additional 46.5 million Americans beyond current plans.

Says AT&T CEO Randall Stephenson: “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future. It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people.”

Obviously the acquisition is subject to regulatory approvals, but if all goes smoothly the transaction will close in about 12 months, AT&T will have eaten up T-Mobile USA, and Deutsche Telekom will have an 8 percent stake in AT&T. Look after the break for the official PR statements from AT&T and Deutsche Telekom that cover the basics summarized here as well as additional notes about competition and financial information. Click through the gallery of images below to see how the merger will affect coverage in America.

[Via Engadget; AT&T]

Continue reading AT&T to acquire T-Mobile USA for $39 billion →

HP acquires Palm; tech world goes “Gasp! Now what?”

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On Wednesday HP announced its plans to buy out Palm for $1.2 billion, or at a price of $5.70 per share of Palm common stock.  This is big news, and it’s quite shocking.  Palm’s existance takes the shape of a rollercoaster ride.  Since its inception in 1996, Palm introduced the world to some of the first personal device assistants (PDAs) with the Palm Pilot, the Handspring Treo, Treo and Centro smartphones, and the failed experiment that was Folio.  After nearly facing its demise, Jon Rubinstein (who helped invent the iPod) left Apple to help ressurect Palm.  And so he replaced Ed Colligan as CEO, created a new mobile operating system called WebOS, and pushed out two new smartphones, the Palm Pre and Palm Pixi.  Thanks to a downright scary marketing campaign (watch this commercial if you dare) and tough business decisions (making the Pre exclusive to Sprint), Palm’s stock took another nosedive and rumors of a buyout quickly surfaced.  Tech companies like HTC and Lenovo sat at the top of analyst’s lists as possible companies to gobble up Palm.  And then, all of a sudden, HP  literally came out of no where to seal the deal.  And look at that, we’ve made it to present day.

HP will officially acquire Palm during HP’s third fiscal quarter, or by July 31.  So what does this mean for the two entities?  Right now this is what Palm’s got: the Pre, the Pixi, and most important to HP, WebOS.  HP’s executive VP Todd Bradley says, “Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices.”  Essentially, HP is going to take everything WebOS and run with it across a wide range of devices.  Which means you can plan to see it running on smartphones and potentially netbooks and tablets.  All this begs the question, what will become of the HP Slate now that WebOS is on the table?  Only time will tell.

It’s been confirmed that Palm CEO Jon Rubinstein will stay onboard with the majority of senior team members at the company.  Also, the current Palm hardware roadmap has not been affected by the merger.  All signs point a happy marrige.  Says Rubinstein: “We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”  He added, “I don’t think HP would do this unless they were willing to make the kind of investment necessary to win.”  What’s interesting here, though, is that HP signed up to be an initial key partner with Microsoft for Windows Phone 7.  Also, HP already has their less-than-successful line of iPaq smartphones.  Will Palm become iPaq or stay Palm?  All of these questions will likely be answered sometime between now and July.  All in all, the acquisition is a big win for consumers (and Palm, really) as it will breath new life into the emerging WebOS platform and introduce new hardware on a whole new scale of innovation.

Look after the break for the official PR and a letter written by Rubenstein to his company.

[Via Engadget, here & here; WSJ] Continue reading HP acquires Palm; tech world goes “Gasp! Now what?” →