The Wealth effect of the acquisition: Analysis Based on Microsoft’s acquisition of Nuance

Abstract

On April 12, 2021, Nuance, acquired company,bought by Microsoft in $16billion. Trough event and SWOT analyses, the paper studies Microsoft’s acquisition of Nuance. This is the Second largest acquisition case in the history of Microsoft, what’s more Microsoft accelerated into the medical area. During the corvid-19, the acquisition can make sense to a company’s development. From the view of the strategic adjustment, Microsoft’s acquisition of Nuance is to expand ecosystem of medical care. Microsoft is good for covering the medical market. What’s more, the the binding of Microsoft and the Nuance can deal with the problem of the telemedicine solutions. However, due to the advantages coming from early placement, not the ability to consistently building technical barriers and keeping up with market demand, he acquisition is sick in the patent applications, market share and the market revenue. However, acquisition is sick in that the barriers of the technology was going to be broken down. At the same time, the opportunity comes from the overall digital transformation of the medical industry in recent years. Microsoft have to pay attention that business model in need of transformation, revenue performance is poor, per capita output is low . The investment advice is that Microsoft’s acquisition of Nuance is a good deal The strategic value of voice interaction in the era of AIoT has been unprecedentedly increased, and the global technology giants are becoming increasingly fierce in their pursuit of this strategic plateau.