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Showing posts with label corporate news. Show all posts
Showing posts with label corporate news. Show all posts

August 16, 2011

Google and Motorola Deal : Who Really Won

Who are the winners  in the Motorola and Google Deal. In a deal of such disruptive proportions there will be some Winners and some losers. Businessinsider posted a detailed article which takes a look at the Winners in This Acquisition

Sanjay Jha took over Motorola's mobile operations and chose to go all-in with Android.The bet has paid off. Jha stands to make $90 million personally on this deal

Google just paid $12.5 billion for a patent portfolio. Sound like a good deal? Not really. But it also gets a handset maker. So that makes it a good deal, right?
Well, this is a low margin business with 19,000 employees and factories around the world. Not exactly the same thing as search and advertising. Is this what Google wants to do

Another winner has been Carl Icah has been involved with Motorola since 2006, fighting with the company's board, trying to get something out of it all. Well, it finally paid off. He's getting $415 million on this one.

Ben Bajarin, who is Director of Consumer Technology Analysis and Research at Creative Strategies, Inc, laid out why Google should buy Motorola on August 2. All of his reasons were spot on.

Nokia's stock is up  with industry sources familiar with the Tech Industry workings, that people think Microsoft will buy Nokia's stock popped in reaction to the news. Microsoft will  be enticed to buy Nokia as a reactionary move,as this will strengthen their product line.Of course Microsoft could buy it as a defensive move.

Apple has a tougher time suing Android, but its rival just made a big risky move
.Apple comes out of this transaction in decent shape. You could argue that it will have a hard fight on its hands in the long run as Motorola works on more Android devices. However, we don't believe Google or Motorola have built any exceptional devices and nothing's going to change that.According to BusinessInsider "We're calling Apple a winner because it forced Google to take this risky $12.5 billion bet on something which it has yet to  develop a core competency ( specially in production)"

March 28, 2011

eBay close to Acquiring GSI Commerce for $2.4 Billion

eBay announced on Monday that it will buy GSI Commerce, an ecommerce and interactive marketing services company, for $2.4 billion. The acquisition is expected to close in the third quarter of 2011.

GSI provides services like technology, order management, payment processing, fulfillment and customer care to about 180 clients across 14 merchandise categories.

Mashable reports that "The company will help eBay expand its services to “retailers and brands of all sizes — from sole proprietors to large merchants,” said eBay CEO John Donahoe in a statement. Meanwhile, eBay expects that GSI clients will benefit from eBay’s Marketplaces and PayPal services.
As part of the transaction, eBay will divest 100% of GSI’s licensed sports merchandise business, as well as 70% of ShopRunner and Rue LaLa. The former service provides free two-day shipping for its paid members and the latter is an invite-only shopping site.

These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin. eBay will lend the new holding company $467 million and Rubin will invest another $31 millio

March 23, 2011

AOL To Shut The Door on 30 Media Brands

AOL Inc. is folding about 30 of its sites into more prominent Web destinations after evaluating the overlap among more than 70 AOL sites and those published by the Huffington Post, the online news commentary site it acquired last month.AOL is on the verge of downing their shutters on  about 30 of its online media brands.
The struggling Internet company plans to emphasize sites that generate traffic and have brand equity with users, including Huffington Post's politics, entertainment and business sites and AOL's Moviephone entertainment, music, Engadget and TechCrunch technology sites

The WSJ  states that the sites that will be folded include AOL's Politics Daily and Urlesque, which will fold into Huffington Post Comedy. Other changes will include Huffington Post's travel section will become a part of AOL Travel, AOL Radio will become part of AOL Music, AOL's Aisledash will be integrated into its Stylelist beauty and fashion site, and AOL's Wallet Pop personal finance site will become a part of its Daily Finance business site.AOL blogs Lemondrop and Asylum have already ceased publication.

AOL acquired the Huffington Post for $315 million last month. Huffingtion Post co-founder Arianna Huffington said, "Today's decisions are another step on the same road we've been traveling since we merged, eliminating duplication to focus on the most dynamic brands which we can invest in and grow," in a statement.

The news comes as little surprise after the struggling tech giant laid off about 900 employees earlier this month, shortly following its $315 million acquisition of The Huffington Post. The staff of some publications were wiped completely.

Kim Voynar at Moviecity news informs that TV Squad is being folded, along with a bunch of other former Weblogs, Inc. properties." And so AOL continues its marvelous tradition of buying something cool and unique and then ruthlessly killing it by a combination of gross mismanagement and arrogant incompetence"

March 19, 2011

The Demand Media Model : Infographic

Via Link
Demand Media has risen quickly to the forefront of the internet industry with its controversial business model. It has been accused of littering search results with irrelevant content for the sake of profit. How does their business model work, and after their IPO, what is their plan for the future? This infographic provides a detailed look at Demand Media’s strategy.Demand Media is the brainchild of Richard Rosenblatt, the former chairman of MySpace, who brokered the 2005 $580 million deal to sell the once thriving social network to Rupert Murdoch's News Corp.

Demand Media Increlies on search engine data and thousands of freelancers to churn out low-cost articles and video,The company employs 13,000 freelancers who contribute to websites including its own and Gannett Co's website for the newspaper USA Today

Since its founding in 2006, Demand has stoked controversy and intrigue among news editors because of its use of software algorithms to predict what stories readers want and the lifetime advertising revenue value from search engines such as Google Inc

November 3, 2010

Bangalore looses to Manila as the " Call Center Capital"

Take a bow !! Manila ... and welcome to the new call center capital of the world . Bangalored is passe .. Manila is in ... The Philippines is set to overtake India as the world’s back office for voice-based customer support and sales this year, as firms such as Cisco, HSBC, T-Mobile and BT Plc shift work to the nation to avoid India’s high staff turnover, and build an alternate support hub.

Better affinity with the American culture, lack of competing industries for skilled workforce, higher tax incentives and an overall strategy to derisk from a pure India-based call centre model are among top reasons for this shift.

Of India’s total BPO exports, nearly 45% comes from voice-based work, which is expected to be around $5.58 billion this year. However, the Philippines BPO industry will post almost $5.70 billion of pure voice-based revenues in 2010, higher than its bigger outsourcing rival, research firm Everest and the Business Process Association of Philippines (BPAP) say.

For all those who thought that BPO specially the "bottom of the pyramid " work would be always favoring is time to eat their words... No country can hope to become the call center capital of the world .. unless it cant control" spiralling manpower costs" which is still the biggest differentiator in terms of comparative advantage among developing economies.

“In standalone voice business, the Philippines will undoubtedly beat India this year to become the call centre capital of the world,” says Nikhil Rajpal, partner, Everest Research India .

Companies such as Cisco and BT are increasingly outsourcing handling of customer queries and support to cheaper locations, including the Philippines. Every time a user of, say, Cisco’s router dials a toll-free customer support number, his call gets diverted to a customer support executive sitting in Manila who is paid less than a quarter of what it would cost to hire somebody with similar profile in the US.

Also among some of the other things which will give a fillip to Philipinnes as the new call center capital of the world is its new K12 proposal proposal of the Department of Education (DepEd),

Despite opposition from parents, students and teachers on the enhanced Kindergarten Plus 12 (K+12) it continues to get support from the private sector, especially from various business industries.

Business Processing Association of the Philippines (BPAP) president Alfredo Ayala said one of the industries that will directly benefit from the planned K+12 program is the Business Process Outsourcing (BPO) industry.

“We fully support this initiative because once this is implemented, we can improve the quality of supply in the BPOs or the call center industry,” Ayala said.

He also stressed that the world has already recognized the supply of talented professionals in the Philippines hence, “there is a need for larger supply and the industry can draw from the graduates who will undergo the 12-year high school

According to experts Experts point out that at this pace, the Philippines can even overtake India’s $12.4-billion BPO industry in five years. The $9.5-billion Philippines O&O (offshoring & outsourcing) industry grew at a compounded 27.6% in the last two years.