Merger and Aquisitions
M&A Report
Table of Contents
1. Executive Summary
2. Introduction
3. The history of Cyworld & SK Communications
4. The industry of Cyworld & SK Communications
5. Background of the M&A
6. The process of the M&A
7. Results of the M&A
7.1. Synergy effect between the messenger ‘Nate on’ and ‘mini homepage’
7.2. CSR (Corporate Social Responsibility) marketing
7.3. Increasing the Profit through the differentiated profit-making model with other competitors
7.4. Successful harmony of corporate culture
7.5. Main Agent Marketing
8. Evaluation of the Case
9. Suggestion for the future
10.
1. Executive Summary
We have seen an incredible explosion in the IT industry all over the world, culminating in a boom of failures and winners. Dwellers all across the industry value chain like Cyworld and SK Communications are a great example to consider. With the immense competition and the industry still very much at its infancy, firms have yet to secure dominant positions. Before acquisitions ever took place, SK Communications has been ineffective in M&As - which in return made them lose a large quantity of money; on the other hand, Cyworld (as a small company) was not known to the general public. SK Communications was engaged, engrossed, and expanding its share of the portal industry where as Cyworld was desperate for M&As because of the lack of finance. In relation, both companies sought the idea of venturing both companies together in order to build a more profitable company. When considering M&A, both companies thought that in conjunction with each other, they could make profit. For example, ‘www.nate.com,’ (a popular Korean portal website) took over ‘www.yahookorea.co.kr’ in terms of page view and the number of visitors. The number of visitors for Nate had easily taken over Yahoo Korea in terms of page views (an estimate of over 10 million viewers). On the contrary, 'Minihompy,' (a Cyworld service that can be
Table of Contents
1. Executive Summary
2. Introduction
3. The history of Cyworld & SK Communications
4. The industry of Cyworld & SK Communications
5. Background of the M&A
6. The process of the M&A
7. Results of the M&A
7.1. Synergy effect between the messenger ‘Nate on’ and ‘mini homepage’
7.2. CSR (Corporate Social Responsibility) marketing
7.3. Increasing the Profit through the differentiated profit-making model with other competitors
7.4. Successful harmony of corporate culture
7.5. Main Agent Marketing
8. Evaluation of the Case
9. Suggestion for the future
10.
1. Executive Summary
We have seen an incredible explosion in the IT industry all over the world, culminating in a boom of failures and winners. Dwellers all across the industry value chain like Cyworld and SK Communications are a great example to consider. With the immense competition and the industry still very much at its infancy, firms have yet to secure dominant positions. Before acquisitions ever took place, SK Communications has been ineffective in M&As - which in return made them lose a large quantity of money; on the other hand, Cyworld (as a small company) was not known to the general public. SK Communications was engaged, engrossed, and expanding its share of the portal industry where as Cyworld was desperate for M&As because of the lack of finance. In relation, both companies sought the idea of venturing both companies together in order to build a more profitable company. When considering M&A, both companies thought that in conjunction with each other, they could make profit. For example, ‘www.nate.com,’ (a popular Korean portal website) took over ‘www.yahookorea.co.kr’ in terms of page view and the number of visitors. The number of visitors for Nate had easily taken over Yahoo Korea in terms of page views (an estimate of over 10 million viewers). On the contrary, 'Minihompy,' (a Cyworld service that can be