Why Google Is to Sell Motorola Unit and Comcast Deal Seeks to Unite 2 Cable Giants - Literature review Example

1. Article 1: After Big Bet, Google is to sell Motorola Unit 1.1. Synopsis The article shows that Google which had procured Motorola some years back is looking to sell of the same and its patents for $2.91 billion (Miller & Geles, 2014). The decision of selling Motorola had an impact on the share prices and it improved in the share market. The reason which had been highlighted for the sell off is that Google wants to concentrate on other areas for its business. 1.2. Discussion The article shows that Google which had acquired Motorola for $12.5 billion is selling the same for $2.91 billion as the company is focusing on other area of business. The fact that Motorola was Google’s biggest acquisition is being sold again as the business is facing problems and wants to concentrate on their core business. A positive impact of the decision was witnessed in the share market as the share prices of Google improved by 2 percent where as the prices of Lenovo went down by 8.2 percent (Miller & Geles, 2014). This shows that the valuation method adopted by Google for Motorola was not correct and resulted in faulty valuation due to which losses were incurred 1.3. Conclusion The reason for choosing the article was that it highlighted an incorrect valuation of Motorola by Google when they were looking to develop an acquisition strategy. This also highlighted the fact that the business decisions were ineffective and the return which the business was expecting based on it was incorrect and the risk was higher compared to the return. 2. Article 2: Comcast Deal Seeks to Unite 2 Cable Giants 2.1. Synopsis The article highlights the acquisition of Time Warner Cable by Comcast for $45 billion in stock and the different impact which the share market witnessed due to the deal (Gelles, 2014). It is also seen that the decisions will have little or no impact on the consumers as both the players are not in direct competition with each other and deal in different ways. 2.2. Discussion The acquisition of Time Warner Cable by Comcast for $45 billion is stock will have an impact on the share prices as when the deal passes through it will create a positive impact on the stock prices. The impact on the micro level is limited as both the players don’t compete with each other thereby limiting the gains for the consumers (Gelles, 2014). The gain for the consumers at the macro level will be in the form of price changes which the stock will witness and will provide an opportunity to make profits. The demand for cable providers will be shaped by the market demand for goods and services and will also determine the price which will be charged from the customers 2.3. Conclusion The reason for choosing the article was that it highlights the manner in which micro level factors will be created and also shows the manner in which valuation of stock and share prices will change in the market. 3. Article 3: Did Google Really Lose on its Original Motorola Deal? 3.1. Synopsis The article shows that Google didn’t loose from the Motorola deal as calculating the different revenues which Google was able to make from the different areas like tax saving, business growth highlights increased revenues for the business. The article highlights the manner in which Google was able to gain from the entire deal despite selling of Motorola for less than the acquired sum. 3.2. Discussion The article highlights that Google who sold Motorola for $2.91 billion after acquiring the same for $12.5 billion. This was due to the fact that the deal provided them $3 billion in cash, $1 billion tax credit, selling the set top box Arris provided them $2.4 billion, handsets revenue were above $2.9 billion and Google still has patents for $5.5 billion (Merced, 2014). This shows that the deal added value for Google as conducting a valuation of the different gains shows that Google was better off from it. The deal also provided Google with a strategic advantage as it was able to carry out business in different areas and thereby helped to multiply the overall productivity for Google 3.3. Conclusion The reason for choosing the article is that it shows the manner in which the Google was able to make profits despite incorrect valuation due to tax saving and increased growth in the business. It can also be looked as the function of time value of money as brining the sum to the present value also ensures that the deal provides an opportunity through which Google gained and profits were made. 4. Article 4: Venture will mine Twitter for Music’s Next Big Thing 4.1. Synopsis This article looks towards highlighting the manner in which Twitter looks to find out the manner in which music and other objects will be directly reached to the fans and customers so that the demand and supply for music and the cost associated with it can be determined (Sisario, 2014). 4.2. Discussion This article shows the manner in which Twitter will be able to identify the fans and customers at the micro level so that they are able to provide music and other objects directly to the customers. This will thereby ensure that the customers are directly benefitted as the demand and supply will help to eliminate the middle man and will provide an opportunity through which the customers can be directly reached. This will also help to understand the fan base and will provide an opportunity through which different services can be provided to the customers. The overall impact will be such that it will help to achieve balance between demand and supply and will ensure that the customers are able to gain through it. 4.3. Conclusion The reason I choose the article is that it helps to provide different dimensions at the micro level and creates an opportunity through which the business will be able to determine its customer base. This will thereby create an opportunity through which identification of the different needs at the macro level will be determined. 5. References Gelles, D. 2014. Comcast Deal Seeks to Unite 2 Cable Giants. New York Times. Retrieved on February 21, 2014 from http://dealbook.nytimes.com/2014/02/12/comcast-set-to-acquire-time-warner-cable/ Miller, C. & Gelles, D. 2014. After Big Bet, Google is to sell Motorola Unit. New York Times. Retrieved on February 21, 2014 from http://dealbook.nytimes.com/2014/01/29/google-seen-selling-it-mobility-unit-to-lenovo-for-about-3-billion/ Merced, M. 2014. Did Google Really Lose on its Original Motorola Deal? New York Times. Retrieved on February 21, 2014 from http://dealbook.nytimes.com/2014/01/29/did-google-really-lose-on-its-original-motorola-deal/?_php=true&_type=blogs&_r=0 Sisario, B. 2014. Venture will mine Twitter for Music’s Next Big Thing, New York Times. Retrieved on February 21, 2014 from http://www.nytimes.com/2014/02/03/business/media/twitter-and-300-team-up-to-find-musical-talent.html Read More