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Discuss Mergers to Acquisitions and provide examples of both

Discuss Mergers to Acquisitions and provide examples of both

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Merger and acquisitions simply means the process of combining two or more organization together. It is an instant means of achieving the expansion. Merger is considered to be a process when two or more companies come together to expand their business operations. In such case the case deal gets finalized on friendly terms and both the organizations share profit in the newly created entity. So that merger helps the organizations to increase their strength and financial gains along with breaking the trade barriers.

Where as in acquisition one organization takes over the other organization and controls all its business operations. Acquisition often happen during recession in economy as the financially strong organization takes over the other. And usually this deal may end up in an unfriendly manner.

Examples:

· Merger: America Online and Time Warner merger was happened in 2000. America Online was an internet provider and Time Warner was an entertainment conglomerate. It was a biggest merger the world has ever seemed. The deal was worth $165 billion.

· Acquisition: One of the major acquisitions was happened in 2006 that Walt Disney Co. acquired Pixar for $7.4 billion. It was a successful acquisition as it resulted in to great revenue through movies such as Toy Story 3, Wall –E. Finding Dory etc.

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