Thursday, September 5, 2013

Microsoft and Noikia

Joe's recent post on Schumpeter and HP inspired a few thoughts, especially when I read about Microsoft and Noikia merging.   

The Microsoft/Noikia deal had been rumored and had died a few times before the recent announcement of the deal. (See That Microsoft-Nokia merger you've been predicting? It's no go.)

But now the deal is on.  Really?   Is this another case of lost margins chasing growth through ill conceived merger? Harry McCracken's Nine Thoughts about the Microsoft -  Noika deal is quite on point - and also consistent with what Joe noted about creative destruction and ill conceived deals.  Read the McCracken post here.

Of course, Microsoft is no stranger to acquisitions, having completed more than 150 deals since 1987.  It is, of course, easy to make acquisitions when times are relatively good and one is awash with capital. It is more difficult to integrate these firms and continue to use them to generate growth at acceptable margins.  


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