1. Intel + Replay Acquisition Strategic Review
Team # 4: Sen, Amol, Belal, Joseph, Ronnie

2. COMPANY BACKGROUND
 Company Founded in July 1968 by Robert and Gordon Moore, headquartered in Santa
Clara, California
 A leader in the design and manufacturing of advanced integrated digital technology
platforms
 $55 billion in revenues and ranked #56 as one of world’s most valuable brands
 Founder of x86 chipsets commonly used in PCs
 Also manufactures motherboard chipsets, network interface controllers and integrated
circuits, flash memory, graphics chips, embedded processors and other devices related to
communications and computing
 Made 21 acquisitions from 2009 to 2016
2014 – Slowdown in PC demand
impacts Intel’s revenue & company
shifts its focus towards chips for
smart-phones and tablets.
1970s – Intel’s
business is
dominated by
DRAM (dynamic
random-access
memory) chips.
1980s – Intense competition
from Japanese manufacturers
reduces the company’s
profitability in DRAM. The
company changes its business
model to focus on
microprocessors.
1990s – Intel becomes the
key hardware supplier to
the personal computer
industry.
2000s – Slowdown in
demand for high-end
microprocessors and
competition from Advanced
Micro Devices (AMD).
2005 – Intel reorganizes
to focus on the core
processor and chipset
platforms.

3. VISION & STRATEGY
Vision: “If it is smart & connected, it is best with Intel”
Strategy: To offer complete and connected platform computing solutions of both
hardware and software, and to continue to drive “Moore’s Law”
Strategy Assumptions:
 Sensification of compute - as computing becomes increasingly personal, users will demand that it capture the
human senses such as sight, sound, and touch
 Smart and connected - more and more devices will be able to process data and connect to the cloud, other
devices or people
 Extension of you - increasingly personal digital devices and their many form factors will become even more
ubiquitous in our lives

4. CCG
58%
DCG
29%
IOTG
4%
SSG
4% Other
5%
PERCENTAGE OF REVENUE BY MAJOR
OPERATING SEGMENTS
CCG
62%
DCG
26%
IOTG
4%
SSG
4%
Other
4%
2014
CCG
66%
DCG
23%
IOTG
3%
SSG
4%
Other
4%
2013
Net revenues for the Client Computing (CCG) are decreasing YOY due to decrease in demand for
desktops. Conversely, Intel’s revenues are increasing YOY for new primary growth engines of
Data Center (DCG) and Internet of Things (IOTG) as more devices become smart and connected
which drives data center growth including data capture and analysis.
2015
Total:$55,355 Total:$55,870 Total:$52,708

5. CORPORATION STOCK PERFORMANCE
GRAPH
$50
$100
$150
$200
$250
2010 2011 2012 2013 2014 2015
Intel Corporation
Dow Jones U.S. Technology
Index
S&P 500 Index
.
Intel stock begins to outperform major indices in mid 2013 as the Data Center (DCG) and Internet
of Things (IOTG) revenues begin increasing.

7. VALUE PROPOSITION
Target
Segment
Problem
Scope
Solution
Benefits Change the way we experience the game during and after play
The sports and video technology enthusiast are the ideal segment
Viewers need a deeper level of immersion
To allow consumers to become “smart and connected”
Revolutionary 3d Visual Data Format

8. ACQUISITION OBJECTIVES
Overcome barriers to entry
• Technology barriers and Intellectual Property in the
Immersive/3D Sports
Reduce costs and associated risks with
New Product Development
• Eliminate the need to “spin the wheels”
Increase Speed to Market
• Accelerate with acquisition and purpose-built
technology
Learn and Develop New Capabilities
• Invest to diversify and broadened strategy

9. VALUE CREATING DIVERSIFICATION
STRATEGY
Related Constrained
Diversification
Vertical Integration
(Market Power)
Both Operational and
Corporate Relatedness
(Rare Capability
and Can Create
Diseconomies of
Scope)
Related Linked
Diversification
(Economies of
Scope)
Unrelated
Diversification
(Financial Economies)
Corporate Relatedness: Transferring Skills into
Businesses through Corporate Headquarters
Sharing:
Operational
Relatedness
Between
Businesses
High
Low
Low High
“Immersive sports requires the high-performance computing Intel is known for, and it’s
also data driven -- fueling the continued build out of the cloud” – Wendell Brooks – SVP &
President Intel

10. ACQUISITION CHALLENGES
Acquisition
Challenges
Intel & Replay
Technologies
Pose
Challenge
Integration Difficulties Vertical Integration to capture 3D Sports
Segment
No 
Inability to achieve Synergy Complement each other- Effective
human capital management
No 
Inadequate Target Evaluation Due Diligence- Technological Alignment No 
Large Debt Non Issue for Intel No 
Too much diversification Strategic Alignment No 
Firm becomes too large Can have negative effect on performance Yes 
Loss of Key Personnel May Reduce Value and it’s competency Yes 
Research suggests:
 20% - Successful mergers and Acquisitions
 60% - Disappointing results
 20% - Clear failures

11. SYNERGIES TO BE GAINED
Gain Intel & Replay Technologies Result
Private Synergy FreeD technology requires high compute
processing
Combined core capabilities
and Competencies –Value
Creation 
Increase Market Power Capture Next Gen 3D Immersion – Sporks
Market
Combined first mover
advantage – Market Leader 
Reshape Firms
Competitive Scope
Legitimate Acquisition Strategy Complements each other with
shared resources – Synergy 
Increase Server, DC
and IOT Market Share
Replay 3D cameras require high compute Intel Processor Sale –
Revenue 
Diversification –
Transition to next gen
technologies
Strategic Alignment – Focus on new
technologies
Resources that are complementary to each
other
Intensive Video processing  Need of faster
processor
Augments decreasing PC
sales- Growth Opportunity

12. Q & A