http://www.embracingchaos.com/2007/10/mergers-when-th.html Analysis of Trends in Technology, Business, Society Wed, 25 Jan 2012 18:52:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.embracingchaos.com/2007/10/mergers-when-th.html/comment-page-1#comment-655 Embracing Chaos » Blog Archive » The Microhoo! deal is all about network effects - Leo Parker Dirac on Business and Technology Trends Sat, 10 Apr 2010 19:08:51 +0000 http://wp.embracingchaos.com/2007/10/mergers-when-th.html#comment-655 [...] most corporate mergers fail (often due to mis-aligned incentives on the part of the deal-makers) there is a solid economic [...] [...] most corporate mergers fail (often due to mis-aligned incentives on the part of the deal-makers) there is a solid economic [...]

]]> http://www.embracingchaos.com/2007/10/mergers-when-th.html/comment-page-1#comment-648 Embracing Chaos » Blog Archive » Microsoft buys tiny stake in Facebook: Game on! - Leo Parker Dirac on Business and Technology Trends Sat, 10 Apr 2010 19:04:15 +0000 http://wp.embracingchaos.com/2007/10/mergers-when-th.html#comment-648 [...] After months of rumors about companies trying to buy Facebook, yesterday a deal was announced.  In a sense the deal is quite small because Facebook sold just a 1.6% equity stake to Microsoft.  But by paying $240 million, the deal values Facebook at about $15 billion!  What’s going on here?  This surely can’t be based on rational economics, can it?  Let’s analyze how these deals should be valued and take a few steps back through recent internet acquisition history for context. In trying to keep this post focused, I wrote a separate article about why mergers and acquisitions rarely work. [...] [...] After months of rumors about companies trying to buy Facebook, yesterday a deal was announced.  In a sense the deal is quite small because Facebook sold just a 1.6% equity stake to Microsoft.  But by paying $240 million, the deal values Facebook at about $15 billion!  What’s going on here?  This surely can’t be based on rational economics, can it?  Let’s analyze how these deals should be valued and take a few steps back through recent internet acquisition history for context. In trying to keep this post focused, I wrote a separate article about why mergers and acquisitions rarely work. [...]

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