According to Investopedia.com (2014), “[…] a merger is a deal to unite two existing companies into one new company […]”. There are 5 main types of merger: conglomerate, horizontal, market extension, product extension, and vertical. In a conglomerate merger, none of the companies to be united has anything in common. In a horizontal merger, the companies to be merged are in same industry, and the deal is part of a consolidation. In a market extension merger, the companies sell same products but compete in different markets. In a product extension merger, companies add together products that go well together. In a vertical merger, the companies make parts for a finished good combine. Among the mergers that I researched, the one that caught my eye the …show more content…
Such a union would give AT&T a new avenue of growth and combine Time Warner’s premiere entertainment assets, including Warner Bros., HBO, and Turner, with the powerful DirecTV, wireless, and broadband distribution. Officially, the motivation behind the deal goes beyond of company growth, and its more oriented to “give consumers what they want” (Brodkin, 2017). In my opinion, this merger is motivated mostly by market expansion and control. With the merger with Time Warner, AT&T will be able to exert some pressure over the competition not only with traditional competitors like Verizon, but with new ones like Comcast, by offering a wider range of services concentrated in one company. In this case, both companies are in the same location and same industry, only in different sectors. Even when the merger already passed shareholder’s votes, the government has not given green light to the transaction. President Donald Trump voiced opposition to the merger during last year's presidential campaign, promising to reject a deal he said would result in "too much concentration of power in the hands of too few." (Kludt
Washington Post,. (2014). Comcast, Time Warner agree to merge in $45 billion deal. Retrieved 18 May 2014, from http://www.washingtonpost.com/business/economy/comcast-time-warner-agree-to-merge-in-45-billion-deal/2014/02/13/7b778d60-9469-11e3-84e1-27626c5ef5fb_story.html
The merger between General Electric (GE) and Honeywell would have been the largest ever merger between two industrial companies, it would have increased GE’s size by almost a third. GE is a leading manufacturer of airplane engines and Honeywell is a leading producer of avionic systems (such as engine starters). It was a stand out merger as it was the first time a merger between two US companies had been solely derailed by the European anti-trust Commission (EC), after having been cleared by the US Department of Justice (DoJ).
three key restrictions beyond those already required by the Federal Trade Commission," said William Kennard, FCC Chairman. The new conditions put on the AOL-Time Warner merger are designed to protect the Internet and its competitiveness. The conditions apply to three specific areas, which include: Internet access over high-speed cable lines, instant messaging via cable lines, and ownership issues between AT&T and Time Warner.
The proposed merger between Comcast and Time Warner Cable would make it the largest provider of cable in America and give it unprecedented market power and allow it to continue to pursue profits and the cost of consumers. While it would not be a monopoly, it would be giving the company dangerous power. Already Comcast has control of one of the largest media providers in America, NBC. It has significant control of internet as well, and has made Netflix pay Comcast to have faster speeds. The question now isn’t if the merger will be bad for business, it is if the United States government will make the right choice for
In conclusion, AT&T has become more organized and improved its tactics to target the younger consumer of their products by adding IM, internet and text messaging to their plans. Even landline connection free due to the Unity Plan and the rollover minutes can make your life more talkative and productive. They also have increased their profit by extending their name to your TV when you purchase U-verse. And now you can make your decision. Wouldn’t you be more comfortable with AT&T products to comfort your life?
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The U.S. constitution and the Sherman Anti-Trust act has very little to do with laws but more so to eliminate the concept of no competition. If the merger between XM and Sirius was approved, it would be allowing two large corporate entities that have already established a large portion of the customer base within their field of expertise.
Firstly, the need for achievement is met by understanding that people strive to master difficult situations, endeavors or challenges. This idea works on both an organizational level, as well as an individual level. From an organizational level, it is well known that a merger of this magnitude had never been attempted. With that brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make such a merger successful. McClelland’s theory states, in regards to need for achievement, that people strive “To excel one’s self…to rival and surpass others… to increase self-regard by the successful exercise of talent” (Kreitner & Kinicki, 2010, p. 215). By this definition, the merger would motivate leadership to excel in the face of a challenge, and to increase their professional self-regard in their success in doing so. On an individual level, you are asking the performers and employees to recognize both economic and social climates, and to come together in action to save both their careers, as well as their passion in life. Such a merger would only embolden self-worth and perceived achievement, because they would be part of a much larger organization more adverse to risk and future change, and they would easily be able to look at other similar organizations and realize they were part of an organization who accomplished something never before attempted.
On December 14, 2000, the Federal Trade Commission approved the planned merger of AOL and Time Warner after both companies pledged to “protect consumer choice” both now and in the future. The AOL Time Warner merger was approved by the Federal Communications Commission on January 11, 2001, and is the biggest merger in corporate history, then estimated at a total market value of $350 billion. The merger created a ‘powerhouse’ of new and traditional media. AOL Time Warner has led the union of the media, entertainment, communications and Internet industries. Throughout the years the face of media and entertainment industries has changed drastically as a result of increased technology. The popularity of newspapers gave way to other forms of media and entertainment such as magazines, television, cable, music, and most recently the Internet.
The vertical merger happens when a company moves up or down its own product line. The sensible reason for merging with or acquiring a company is that it makes financial sense.
1. Firm Strategy, structure & rivalry As for February 2018 only 5 major conglomerates owned the whole motion picture industry in California: Walt Disney, Time Warner, NBC Universal, Sony and Viacom, making of this a very consolidated industry, which has even been criticized saying that "The big fish are eating each other, and soon there may only be one left" due to the recent acquisition of 21st Century Fox by the giant Walt Disney (VanDerWerff, 2017). However, mergers and acquisitions activities between big media conglomerates are closely watched by the government, moreover AT&T's plans to acquire Time Warner has been blocked by an antitrust lawsuit issued by the US Department of Justice stating that the merger "would weaken competition and hurt consumers" (Repko, 2017). Streaming services introduced by Netflix and Amazon have boosted competition in the motion picture industry, driving a race for more sophisticated productions in the industry, CEO's of Amazon and Netflix have stated that there's still space for more competitors (Laskus, 2017).
AT&T Inc. is an American multinational telecommunications conglomerate, with its headquarters located at Whitacre Tower in Dallas, Texas. According to Forbes,AT&T became the world's largest telecommunications company after buying DirecTV, as of July 2017.AT&T is the second largest provider of mobile telephone services and the largest provider of fixed telephone services in the United States, and also provides broadband subscription television services through DirecTV making it the largest pay television operator. As of February 2017, AT&T is the 12th largest company in the world as measured by a composite of revenues, profits, assets and market valuation. The purchase of DirecTV for $48.5 billion, or $67.1 billion including assumed debt is an
The history behind Time Warner began with two independent companies, Time Inc. and Warner Communications in the early 1920s. Henry Luce and Britton Haddon were the founders of Time in 1922 and Warner Brothers (Warner Bros.) was incorporated by brothers Harry, Abe, Jack, and Sam Warner, in the same year (Time Warner, 2015). The two companies joined and became Time Warner Inc. in the early 1990s. According to MarketLine, Time Warner, Inc.
According to Florida Incorporation, a merger is the statutory combination of two or more corporations in which one of the corporations survives and the other corporations cease to exist. An acquisition is obtaining control of another corporation by purchasing all or a majority of its outstanding shares, or by purchasing its assets (Florida Incorporation, 2006).
Mergers mean two or more companies combining together to form one business or firm. There are six different types of mergers: Horizontal, Vertical, Conglomerate, Market extension, Product Extension and Diversified activity.