Technology Executive Connections: Shaping Digital Convergence through Mergers & Acquisitions


There's no doubt that convergence is causing great change--partnerships, alliances, and M&A deals are all on the rise. But is convergence really the driver? In order to shed some light on this question, PwC and the Economist Intelligence Unit asked executives across the world what they thought about this and other related questions. The result is PricewaterhouseCoopers' newest report, Shaping Digital Convergence Through Mergers & Acquisitions.

PwC hopes this report provides interesting, provocative reading and that it gives you food for thought as you plan your convergence-driven strategies and activities.

Digital convergence and mergers and acquisitions (M&A) are changing the nature of today's marketplace. To assist executives in understanding both the opportunities and the pitfalls, the EIU and PricewaterhouseCoopers conducted a global survey of 149 executives in February 2006 and supplemented the findings with over 30 in-depth executive interviews. Examined through the collective eyes of executives, the opportunities and challenges come to the fore. Corporate strategies vary widely, but close inspection reveals a number of common elements of decision-making and execution.

Research findings are organized across four principal observations:

Observation one: Digital M&A will continue to surge. Watch out for some messy results as acquirers over-reach themselves.

Observation two: Though they see the value of M&A, executives recognise partnerships and alliances as a worthwhile alternative means of profiting from convergence.

Observation three:
The deals that work start with strategy--and today those strategies are heavily focused on software developers and business content providers.

Observation four: Winners in digital M&A need not only a great business strategy, but also a plan to integrate business models and cultures.