Under two separate deals, Microsoft acquired Nokia's devices and services division to strengthen its position in smartphones, while Verizon and Vodafone parted ways to enhance their own products and services. The Verizon-Vodafone deal will see Verizon acquire Vodafone's 45% stake in their joint U.S. venture Verizon Wireless for $130 billion, allowing Verizon full access to profits from the largest U.S. mobile operator. The Microsoft-Nokia deal involves Microsoft purchasing Nokia's handset business and licensing its patents for $7.2 billion in an effort to improve its mobile offerings, but faces challenges in reviving the declining Nokia brand.

1. Two big deals

2. Shrawan
Arya
Made by

3. To obtain understanding of Vodafone Verizon Deal
To obtain understanding of Nokia Microsoft Deal
Social Media Buzz regarding these deals.
Session Objective

4. Under two separate deals that took place recently,
Microsoft, Nokia, Verizon and Vodafone took steps that
speak to the companies’ expectations for the smartphone
market and the telecom industry as a whole. Microsoft’s
decision to acquire Nokia's devices and services division
could help it shore up its place in the smartphone ecosystem
while Verizon and Vodafone parted ways to enhance their
own products and services.
Introduction

6. How two CEO’s
had a big deal for
Breakfast
You Did say
“Breakfast meeting”
REMEMBER?
Verizon, Vodafone
chief executives
talked in gym and
agreed on price at
breakfast.

7. Project River
They named the project “River”, Verizon was referred to as Hudson and
Vodafone as “Thames”.
Vodafone will get $58.9 billion in cash, $60.2 billion in Verizon stock and an additional
$11 billion from smaller transactions.

8. • McAdam said simply that the time was right to buy.
• "I think there's going to be a burst of rocket fuel in the Verizon
engine as a result of this transaction,"
• For Verizon, the deal will provide a massive boost to cash flows
at a time when growth is slowing in the U.S. wireless market.
• We think we have a balanced approach here," Colao told reporters,
adding that he was "super committed" to the next chapter of the company.
"We are reducing our debt level which will enable the company to be very robust
and take opportunities if they arise."
What two CEO’s says:

9. The deal in cash and stock will give Verizon full access to
the profits from the United States' largest mobile
operator, handing it fresh firepower to invest in its mobile
network and fend off challengers in a tough market that is
fast becoming even more competitive.

11. Microsoft And Nokia: A Marriage Made In Hell?

12. • Microsoft agreed to buy Nokia’s handset unit and license
its patents for $7.2 billion.
• The device and services unit, along with 32000
employees, including its CEO Elop will transfer to
Microsoft.
Deal

13. What CEO says:
• It’s a big transformation, but that’s what you’ve got to do
in the tech business to move forward,” said Ballmer.

14. • For thousands of Indians, what Maruti is to cars and
Colgate is to toothpaste, Nokia is most definitely is to
mobile handsets.
Brand Nokia faces tough
ride to get its mojo back

15. • Microsoft’s purchase of Nokia fits the bill, as Microsoft has lacked a
successful product in the fast growing mobile phone market.
• Microsoft’s purchase of Nokia’s mobile phone business is at desperation at a
lack of internal innovations, acquisition in lieu of innovation, and a bet on a
declining star.
• Windows Mobile did not take off, despite Nokia’s embrace, and Nokia’s
market share declined from a peak of 41% to its current level of 3% despite
Microsoft support. It’s unclear what Microsoft’s further investment in buying
and licensing Nokia assets can achieve.

16. • To succeed, Microsoft should look internally. It has terrific talent.
Moreover, with its deep pockets it can hire what it lacks. Successful
digital firms have grown mainly on their internal development of
novel technologies. Examples are Apple, Google, Samsung now, and
Nokia and Blackberry earlier. Microsoft itself has created successful
products primarily through internal development: DOS, Windows,
Word, Excel, PowerPoint, Xbox
• Microsoft now suffers from what we call the incumbent’s curse: It
fears cannibalizing cash cows, it focuses on the present over the
future, and it is risk-averse. The solution lies within rather than
without: Abandon failed legacy products, shun acquisitions, and
innovate relentlessly within, even at the cost of cannibalizing one’s
sacred cows.

19. Thank You