Mergers, Acquisitions and Takeovers Case Study

Thomson Corp., Acquires Reuters: Is it in the Consolidation Phase?

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Abstract:
Market data plays an indispensable role in successful business activities and the market data industry enjoys a global presence. Catering mainly to the needs of institutional and retail brokers, the industry is dominated by a few major players - Bloomberg L.P., Reuters Group Plc and Thomson Corporation. The new entrants into the industry are stock exchanges - a major source of direct data. Since the 1980s, the market data industry has been experiencing a wave of mergers and acquisitions. The major breakthrough is the proposed acquisition of Reuters Group Plc by Thomson Corporation worth $17.2 billion, on May 15th 2007. The deal is expected to displace the market leader, Bloomberg L.P. The case, while enabling an understanding of the market data industry, facilitates discussion on how the acquisition would impact the business dynamics of this industry.

Pedagogical Objectives:

• The business dynamics of the market data industry
• The competitiveness and business lifecycle of a market data provider.

Keywords : Thomson Corporation; Reuters; Bloomberg; Mergers,Acquisitions,Alliances Case Study; Consolidation Phase; Industry Dynamics; Business Dynamics; Business Strategy; Business Environment

Contents : 
Global Market Data Industry: The Landscape
Product Offerings of Vendors in the Retail Data Market
Thomson Corp. Company Structure
Thomson: Into the Consolidation Mode?
Players in Global Market Data Industry
Thomson’s Acquisition and Sales of Assets