Question

The deal between Comcast and Time Warner is described as a merger. Which of the following statements is an accurate comparison between an acquisition and a merger? a. The companies could have just as accurately called it an acquisition, because acquisition and merger are synonymous terms that refer to the pooling of two companies' resources and operations. b. The companies could have just as accurately called it an acquisition, because acquisition and merger are synonymous terms that refer to the purchase of one company by another. c. An acquisition is the purchase of one company by another, whereas, in this case, a merger occurs when two companies pool their resources and operations. d. An acquisition occurs when two companies pool their resources and operations, whereas, in this case, a merger is the purchase of one company by another.

Answer 1

Below statement is an accurate comparison between an acquisition and a merger:

An acquisition is the purchase of one company by another, whereas, in this case, a merger occurs when two companies pool their resources and operations. An acquisition happens when one company buys out another company and gives it the same brand name. A merger happens when both the companies enact a deal wherein theur resources are pooled together and a common company is created.