An acquisition can be defined as the consolidation of companies or assets. This is basically when one company is purchased by another and as a result, no new company is formed. There are several different drivers of a successful acquisition; these comprise of due diligence, strategic drivers, and aligning cultures. Due diligence basically means evaluating company decisions prior to finalization. This focuses on numerous areas including financial, legal, and regulatory, accounting and tax. In summary, due diligence is fixated on making numbers work. When this stage is cleared after thorough observation then partners move onto the next stage. In Telstra a great aspect of time was spent on this stage, everything was double checked before moving onto the subsequent step. It is evident that Telstra has been successful in making numbers work. Strategic Drivers Effective Organizational Growth: This is …show more content…
To increase these aspects it requires grasping already established customer loyalty and developing on it. After the introduction of Pacnet, revenue intensified by 39.4% to $1238 Million. Revenue from China digital media portfolio increased by 81.3% to $504 Million. Therefore, this increase reflects a successful acquisition. Telstra's Share price has had a steady increase over the past couple of years. During this duration Pacnet was introduced, therefore, Pacnet has been a driver in the increase. The share price in FY12 was $3.11, on 30th June 2015 the closing share price was $6.14 that’s a rise of 97.4%. The earning per share has also risen immensely, the share price after the acquisition has steadily increased. As revenue escalates and the company expands it attracts more investors, which therefore increases the share price. This is the case of Telstra with the introduction of Pacnet. Evidently this portrays that this acquisition is a successful
By the acquisition, Comcast was clearly investing in content; this is a huge transformation for Comcast. This acquisition signals that they want to get bigger ...
CenturyLink is one of the larger communications companies within the United States and has even expanded abroad to other countries. When analyzing the SWOT analysis for CenturyLink, I was able to identify several strengths that set them apart from their competitors. As mentioned, they are distributing services in over 20 states currently and continue to broaden services to reach more clientele. They pride themselves on exceling in data communications and network systems databases which has allowed them to become one of the desired communication companies.
Robert Zimmerman, the senior vice president of business development, for American Cable Communications (ACC) was in the process of looking for a potential acquisition target for ACC. In December 2007, Zimmerman remember a presentation that was made recently by Rubinstein & Ross (R&R). R&R was a boutique investment bank that was well known for doing deals in the media and telecommunications area. During this presentation it was suggested that ACC buy out AirThread Connections (AirThread) which is a large regional cellular provider. The current industry of these companies were moving more toward bundled service offerings and by adding AirThread it would help ACC cover an area of service it does not currently offer. In order to determine if the acquisition should be done an analysis needs to be done.
A) According to the article:’ Time Warner Cable to Merge with Comcast Corporation to Create a World-Class Technology and Media Company”, Time Warner Cable and Comcast came to a friendly agreement in which the board of directors approved the stock-for-stock transaction where Comcast will acquire 100% of Time Warner’s cable shares outstanding. This acquisition will be both beneficial for Comcast’s consumers and their shareholders where this merger will create a technological innovating company with ground breaking products and services. This acquisition will be accretive to Comcast’s free cash flow and yield many synergies for both companies. As Robert D. Marcus, Chairman and CEO of Time Warner Cable said, "This combination creates a company that delivers maximum value for our shareholders, enormous opportunities for our employees and a superior experience for our customers". Through this merger, many consumers and businesses will benefit from the new company with cutting-edge products that will broaden the technological platform in the media. Not only this merger will reduce competition, but also will add to Comcast the 11 million TWC subscribers, which will be totaled in around 30 million subscribers and will expand to Comcast’s geographic footprint in the media platform.
The average offer price per share as a multiple of EPS for recent railroad acquisitions is 17.22 times. If we multiply that by Conrail's expected EPS for 1997 of $5.69 we get an offer price per share of $97.98. This is substantially higher than the front-end cash offer from CSX of $92.50. We also looked at enterprise value as a multiple of EBITDA. The average for recent railroad acquisitions is and enterprise value of 10.58 times EBITDA. Conrail's EBITDA for the last four quarters is $1,017 million. This calculation gives us an enterprise value of $10,760 million. We calculated the two-tiered offer to be $8,185 million from CSX in Appendix 3. This is significantly lower than the estimated enterprise value calculated based on
It is true that internet business I increasing booming, because the new internet market is still developing in fast pace, every company want to be more profitable through their internet business. At the same, it looks like the company thought they can easily make more profit over the internet. Therefore, they tend to be crazy for sales figure and sell products at very cheap prices. However, this is not the right way. Porter mentioned “the distorted revenue, cots and share prices have been matched by the unreliability of the financial metrics that companies have...
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.
Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases.
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).
Globalization involves a variety of links expanding and tightening a web of political, economic and cultural inter-connections. Most attention has been devoted to merchandise trade as it has had the most immediate (or most visible) consequences, but capital, in and of itself, has come to play an arguably even larger role than the trade in material goods. Human movements also link previously separate communities. Finally, there is the cultural connection. All the individual data would indicate that we are undergoing a process of compression of international time and space and an intensification of international relations. The separation of production and consumption that is the heart of modern capitalism appears to have reached its zenith. Globalization is not just another "buzz-word" (globaloney), but very much a real and significant phenomenon.
The acquisitions process starts from obtaining the necessary raw materials to make a product and ends with the delivery of the product to the buyer. Acquisition and Supply Chain Management encompasses activities such as contract administration, product procurement and manufacturing, and logistics.
A merger is a contract to bond two prevailing companies in to one company. There are several types of mergers and also several motives why companies complete mergers. Most mergers hitch two existing companies in to one newly named company. Mergers and acquisitions are commonly done to swell a company reach, expand into new segments or gain market share. All of these are done to please shareholders and create value. In a merger the BOD of the two companies approve the grouping and seek shareholders’ approval, after merger the acquired company ends to exist and becomes part of the acquiring company.
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.