One viable method of growing your corporate footprint is to merge with or acquire another company, or possibly several companies, integrating them into your fold.
There are many reasons companies choose to do this:• Enhance/expand the product line or services offered
Examples of a Business Buying Another Business
For whatever reason, companies love purchasing other companies. Read a recent example below.
Microsoft purchased Skype for $8.5 Billion. This is the second time Skype has been bought out; after being started in 2003, it was purchased by eBay in 2005 for $3.1 billion. Then in 2009 eBay sold the majority of its stake to a private investment group for approximately $1.9 billion. The purchase was Microsoft’s biggest ever, surpassing the $6 billion acquisition of advertising firm aQuantive in 2007.
Why would Microsoft purchase Skype when Windows Live Messenger and Lync 2010, Office Communication Server, overlaps with Skype?
Skype has about 8 million service subscribers; integrated telephone connectivity that has the ability to make both outbound and inbound phone calls. Additionally, part of Skype’s overall strategic plan was global expansion which they have achieved through rapid growth modeling. So, Microsoft instantly added 8 million customers with their valuable information. As a result, Microsoft increased their global presence, and strengthened their telephony offerings.
Benefits of This Purchase
In this case, lead generation and lead nurturing benefit in several ways. Here are 2:
1. Microsoft picks up 8 million Skype customers, giving the software giant a new revenue stream. Plus they now have 8 million potential new leads for current and future services and offerings.
2. It leads me to believe they are going to develop and launch a telephony division to either directly or indirectly compete in the VoIP and/or telephony business sector. This would provide a new service for all of the current product and service users.
So, you can see how merging organizations or acquiring an organization can indirectly impact, in a positive manner, your Lead Generation and Lead Nurturing Strategies both long and short term.
What do you think? Why did Microsoft buy Skype or what are other ways Lead Generation and Lead Nurturing could benefit from an M & A event?