Sky's Acquisition of Amstrad: Strategy Analytics Comments.

0 Comments | M2 Presswire, July, 2007

M2 PRESSWIRE-31 July 2007-STRATEGY ANALYTICS: Sky's Acquisition of Amstrad: Strategy Analytics Comments(C)1994-2007 M2 COMMUNICATIONS LTD RDATE:31072007 London - Sky continues to surprise the market with its latest moveto acquire Amstrad, the UK set-top box supplier. Given Sky's continued financial success, it would be dangerous to bet against the benefits of this acquisition, but it certainly seems to be a curious move.

Sky believes it can manage the set-top box supply chain effectively, even though it has little experience as a manufacturer. And that owning Amstrad, rather than having it as a partner, will improve its current innovation process. Both of these arguments seem tenuous at best. Pay TV companies rarely own the manufacturing of their...