Microsoft buys and licenses AOL patents in $1bn deal

Internet companies always struggle to monetise; it is interesting how a market of patents is emerging and how some traditional companies (like AOL) can profit from it.
Microsoft buys and licenses AOL patents in $1bn deal
Microsoft is buying the majority of AOL's patents in a deal worth $1.06bn (£668m).
A statement said the agreement covers the intellectual property rights to more than 800 innovations.
Microsoft will also be granted licensing rights to about 300 patents that AOL is keeping.

Read the whole article at: http://www.bbc.co.uk/news/technology-17657205

RBS Sells Aviation Business to Sumitomo Mitsui for $7.3 Billion

This is a good example of how companies that struggle with their finance would develop their strategy as returning to their core competencies and main activities. This is an interesting example of a company that tried to create synergies between two largely unrelated business units. In theory, Banks/Financial Institutions with the large number of clients could create synergies in all sort of business, however this case shows that the lack of expertise (and probably the economic climate did not allow for the synergies to be developed); it is worth mentioning that aircraft leasing is a considerably larger business in N. America which has never really developed in Europe.


RBS Sells Aviation Business to Sumitomo Mitsui for $7.3 Billion

By Gavin Finch and Takahiko Hyuga

Jan. 17 (Bloomberg) -- Royal Bank of Scotland Group Plc is selling its aviation leasing unit to Sumitomo Mitsui Financial Group Inc. for about $7.3 billion, the biggest disposal by the state-owned lender since its U.K.-government bailout in 2008

Read the whole article at: http://www.businessweek.com/news/2012-01-17/rbs-sells-aviation-business-to-sumitomo-mitsui-for-7-3-billion.html

The end of the 'Sony Ericsson' Affair

This is a good case study of JV that never really worked as expected. One of the most interesting pieces of information was the fact that Sony was reluctant to link the handsets to the rest of its products which are very successful, fearing that Ericsson would had been benefited. This is also a very good example of how companies seeks to develop synergies based on their core competence. Sony has a great range of unique resources and core competences which should be linked to the handset.
It is quite interesting that when this JV was established the handset industry was not linked to any of other products by Sony.

Some articles for the full story: http://www.bbc.co.uk/news/business-15473954; http://www.bbc.co.uk/news/business-15285258

Google to buy Motorola Mobility for $12.5bn

Good example of an acquisition which serves as diversification-focus strategy by Motoral and an external growth strategy by Google. Motoral has lost the battle for the handsets, so focuses in the corporate and government solutions sector where it is well placed. Google does not have the time to grow organically its handset SBU to compete with the other smartphones and hopes that its existing core competences and SBUs could help develop synergies.

Google to buy Motorola Mobility for $12.5bn
Internet giant Google has announced a deal to buy Motorola Mobility for $12.5bn (£7.7bn).
A joint statement said the boards of both companies had unanimously approved the deal, which should be completed by the end of this year, or early in 2012.
Earlier this year, Motorola split into two separate companies.
Mobility develops and manufactures mobile phones, while Motorola Solutions covers wider technologies for corporate customers and governments.

News Corporation and BSkyB takeover

Let aside the political issues of this takeover or merger, what is interesting from a strategic management perspective is the efforts of News Corp to develop synergies (http://www.bbc.co.uk/news/business-14104397) between different media platforms. This is a clear corporate direction (see a good review of the various attempts http://www.guardian.co.uk/media/organgrinder/2011/jan/05/news-corp-bskyb-david-elstein). An interesting question is why BSkyB was not part of the News Corp from the beginning since it was established by the same company (for a brief history/evolution of the company see: http://en.wikipedia.org/wiki/File:UK_satellite_TV_evolution_vector.svg), which should probably be attributed to risk management by News Corp. The other point which worth taking is that merger is the only strategic option as the legislation would not allow for collaborations and synergies via some sort of strategic alliance.

Microsoft's Bing deepens ties with Facebook

Good example of how Microsoft creates synergies between one of its SBUs (search engine) and facebook.com (which they do not own 100% but they are one of the main shareholders). This actually workds as a good example of how strategic alliances work, too. Interesting to note, that Microsoft has spent almost a decade trying to catch up Google and it seems that are not capable of developing the reource/capability in terms of technology and they are definetely lacking in terms of reputation; however creating synergies with the most popular networking site could help them boost Bing's popularity and usage.

Microsoft's Bing deepens ties with Facebook

Microsoft's Bing search engine has begun showing US users which sites and products their Facebook friends like.
The move is an attempt to make web search results more personal.
It is part of a four-year alliance between the two companies and marks another step in Microsoft's attempt to displace market leader Google.

Read the whole article at: http://www.bbc.co.uk/news/technology-11540661

Google enters travel market with flight data purchase

Google is diversifying while building on its core competences.

Google enters travel market with flight data purchase
By Daniel EmeryTechnology reporter, BBC News

Search engine giant Google has entered the travel market after acquiring flight information firm ITA Software.
ITA provides software that organises fares, flight and journey times that are used by airlines, travel agents and flight comparison sites such as Orbitz.
Google said it may well expand the scope, enabling users to search directly for flight destinations.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/10486358.stm

Fast bucks: how Porsche made billions

It is fascinating to read how a company can prosper within a financial crisis period. Porsche is definitely an interesting case study and at the same time it provides good examples on the appointment of a leader, without any relevance and capabilities in the sector (think our 'leadership expertise'), has created unexpected sources of income.


Fast bucks: how Porsche made billions
By Emily Hughes BBC Money Programme

Porsche is world famous for its iconic sports cars.
But car manufacturing isn't the only thing the company is good at.
Last year it made six times as much on the stock market as it did making cars.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7843262.stm