Boston, MA 12/11/2013 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT) is the world’s largest software company with a market value of $318.14 billion. Its main rivals in business are Google Inc. (NASDAQ:GOOG) and Apple Inc. NASDAQ:AAPL). The company develops PC and mobile software and it is lately into hardware business where it develops tablets, games consoles and is set to start making phones after taking over Nokia Corporation (ADR) (NYSE:NOK). MSFT is paying about $7.2 billion for the takeover of NOK’s handset business.
The deal with Nokia has already received regulatory approval in the EU.
In 2011, the company took over Skype in $8.5 billion deal. But this takeover has come under attack from Cisco Systems, Inc. (NASDAQ:CSCO) and other rivals. The basis for the challenge of this deal is over monopoly where the challengers believe that the merger of the two companies presents them with undue control of the voice and video market.
The European Union regulators cleared the takeover and Europe’s second highest court upheld that decision on its Dec. 11, 2013 ruling. This comes as a crashing loss for Cisco Systems which is opposed to the takeover in what can be seen as attempts to protect the interest of its customers in the telecoms industry. Cisco Systems now has the option of appeal the case in the region’s highest court.
Cisco is backed in the case by Skype rival Messagenet SpA which offers internet and fixed-line telephone services.
The MSFT-Skype combination spoils the party for telecoms operators as more people switch to cheaper voice and video services. Increasing uptake of smartphones is also fueling this migration which essentially presents profit opportunity for MSFT.
The defeat of this case presented by CSCO is expected to see the launch of more voice and video services from Microsoft Corporation (NASDAQ:MSFT) in the coming months to improve its profit earnings from this segment. Currently the company is in the process of selected a new CEO who will take over from the outgoing CEO Steve Ballmer.