Megers

A Merger is two companies or more deciding to move on as one business. Mergers in the business world could be very successful or a big failure to the business. Which can make your business much better or it can lead it to a big failure. Businesses do not really know what the outcome it would be till it happens. There are many different types of mergers a vertical or a horizontal. A horizontal merger is a merger between two competitors. Suppose, for example, that tomorrow Pepsi were to buy Coca-Cola. This would be a horizontal merger. A vertical merger occurs when a supplier buys a reseller, or vice versa. The key point is that the two companies have a buyer-seller relationship. Suppose that a jewelry retailer purchased a company that manufactures jewelry. There are many reasons why business decides to merge their company but the main reason companies merge is to save on the costs of production, particularly in a merger of former competitors. A merger also can generate capital to enter markets or launch products the companies would not be able to do as separate units. Furthermore, companies may possess complementary best practice and technical knowledge that makes it easier for them to compete in the market.

One of the best successful mergers in the media industry was the merger of Disney and Pixar. They two companies merge in 2006 and they are still standing strong. Both companies has been known for producing the best animated movies which many other companies who produces animated movies are envious about. It has proven from sales from the box offices that every movie produces from them is a hit. Movies such as “Ratatouille”, “Up”, “Wall-E”, and the Toy Story franchise area big hit in the box office that hit number one more than a week. The movies can be enjoyable for kids and also the parents. The merger consist of Disney agreed to buy the computer-animation studio for stock that valued at nearly $7.5 billion. It was reported that Disney offered a 2.3 shares...