The threat of digital disruptors is the key reason for recent deals in the tech and media spaces. Legacy companies want to make sure they can still compete with these new players, while they are also looking to add more capabilities in order to enter new markets.
UPC's cable broadband assets would help mobile-only Salt become a more credible player in a Swiss communications market increasingly drawn to converged services. However, it would take more than increased scale to transform Salt's faltering business and a take-over of both Salt and UPC by a more experienced player - possibly Vodafone - would unlock the full value of both assets. Realistically...
Cisco will continue with its acquisition spree as it looks to diversify away from its legacy core networking products. Ericsson has been mooted as a target, and while the merged company will have unrivalled scale and reach, it would also need a level of integration that neither company has so far experienced.
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Thanks, BMI Research