What is M&A Going to Do for Ericsson?: Kanji

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Oct. 24 (Bloomberg) -- Hussein Kanji, Partner at Hoxton Ventures, discusses earnings and market strategy of various technology companies. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

This line caught our eye.

M&a is logical.

Is he going to be an acquirer or is he going to be a predator in this market?

He has gone back and forth in this.

Every six months, he says m&a. the next month, he says he will focus on r&d. what is it going to do for ericsson?

There is consolidation in the industry.

The obvious suspect there would be nokia.

There are also gaps in the ericsson portfolio.

That is a big forefront.

Do you think we should refer -- seriously interested in nokia?

That is speculative.

They did get the patents for nortel that that is a big move.

We have microsoft later on.

Do you think we get a hint in terms of who might replace ballmer?

Should it be a software background man or a hardware background man, in which case does elop fit in here?

I think he is one of the front contenders.

That was part of the reason for the acquisition.

They have hinted at it.

The future is all device and services.

It makes sense for someone who knows how to deal with a converged environment.

It does has to be someone who is product oriented.

That is a hard skill.

You mentioned devices and services.

We will talk about the cloud and the server business.

Is it a real disruptor that apple has gone out and given part of their software for free?

Is that a true disruptor for microsoft?

It is interesting.

Apple is taking an interesting playbook.

It is the blackberry story.

That may be operating system free.

Most of the margin used to be on the operating system side.

Apple is now bundling that in for free.

I looked through some of your numbers.

Office is the biggest earner for the company.

40% of the microsoft value and 93% of the market share.

Blackberry had a huge market share at one stage.

Fax and microsoft has issued market share right now.

It hasn't released an office for ipad yet.

They have it, they won't release it.

They have built it internally and they're confused at the executive level whether they ought to be in this business or not on the tablets that are not their own.

They have written off the other one.

They're happy to do it on their own tablet.

They weren't happy about doing it on a competitors tablet.

The competitors tablet is the market leader.

The problem here is that apple's products are getting better.

It is quite future competitive and now it is free.

This is where microsoft -- this is microsoft's bread-and-butter business.

It is being commoditized right under its nose.

If you are buying a new machine, you get a free copy of the os.

You get a free copy of i works.

You get much better hardware.

If i am an investor and i am listening to the conversation we have had, why would i even consider owning microsoft on a real investment term?

It is a dominant player in the industry.

When it wakes up and when it does wake up -- it has done this is directly.

In the internet is, it was fast asleep.

When it wakes up, it is a machine.

It can get very focused.

It needs one thing at the helm, a leader.

Right now, at microsoft, the biggest beginner ship -- weakness is leadership.

Talk to me about the other products.

Cloud and server business within microsoft.

What is that about?

What is going to be?

M that is the fastest-growing business inside of microsoft.

It is about 25% of the enterprise value.

It has been one of the big success stories.

It only does about 100 million of revenue.

You can actually figure out how much money -- what the actual metrics are.

Microsoft has promised that they will increase transparency.

Amazons stock price has been on fire at this is a company that doesn't make money.

I don't know what is going to end up happening.

They are focused on revenue growth.

Amazon is one of the companies are you take a 30 year view.

Kudos for that kind of long-term strategic leadership.

Would you have that in your basket?


Yeah probably.

It is ridiculously overpriced, i think.

It is a business where they take virtually all the cash they make and reinvested back into growth.

If you believe they could be the dominant e-commerce company in the next generation, it is a long-term by.

Always good to get your input.

Here are some companies that are "on the move." hewlett-packard is looking for buyers for some of its mobile computer patrons.

-- patents.

This text has been automatically generated. It may not be 100% accurate.


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