MGMT E 2720 Mergers and Acquisitions Supplemental Case Questions 1. The New York Times a. Why is there so much family control in the newspaper business? b. How did the Sulzberger family manage to retain control on the NYT after it went public? c. How does the NYT dual class structure differ from the one used by Dow Jones‚ prior to its takeover by Rupert Murdoch? d. What explains the behavior of the NYT institutional shareholders – not just Morgan Stanley but also
Premium Stock market Discounted cash flow Capital structure
Mergers and Acquisitions The impact of mergers and acquisitions on business can be minor in some cases and larger in others. Companies merge with or acquire other companies for the purpose of making money. Sometimes these deals have a sensible reason for being made and other times they are dubious in nature‚ done for the sole purpose of raising the stock price. The sensible reason for merging with or acquiring a company is that it makes economic sense. Either the company is not streamlined‚ under-performing
Premium Mergers and acquisitions Stock
Mergers & Acquisitions: The Case of Microsoft and Nokia Luís Franco Hilário Advisor: Peter Tsvetkov Dissertation submitted in partial fulfillment of requirements for the degrees of MSc in Business Administration‚ at the Universidade Católica Portuguesa SEPTEMBER 2011 1 Abstract Due to the financial downturn and the emergence of new devices in the global handset market has led companies to change their business strategies. Indeed‚ Mergers and Acquisition are considered one of the
Premium Discounted cash flow Weighted average cost of capital Free cash flow
Why are there mergers and acquisitions? Mergers and acquisitions take place for a number of reasons‚ such as refinancing for a better price‚ amplifying expansion‚ and submerging risk through diversification. New entities may drag behind after a merger takes place due to the higher cost of matching different and unconnected economic activities. Diversification by business groups may also reduce technical effectiveness. When a merger takes place‚ a bigger business groups emerges from the two which
Premium Mergers and acquisitions Corporate finance
Mergers & Acquisitions (M & A) is a general term used to refer to the consolidation of companies. Merger is the corporate action where two companies decide to combine their operations. Both the companies involved in the merger cease to exist resulting into a combined new company. On the other hand Acquisition is a corporate action where one company overtakes the operations of other company. The acquired company thus becomes a part of the acquiring company. Acquisition may at some times be without
Premium Mergers and acquisitions
Kyle Qualizza English 104 2/8/10 Gatorade One of the most dominating keys in today’s business world can easily be seen through the Gatorade Company. Their products have become extremely popular to the world‚ keeping their competition in the dust. Ordinary businesses struggle to retain their name on the board with this eminent company in the way‚ and for obvious reasons: excellent advertisement. Forty-five years have passed since the creation of this ultimate athletic drink‚ and Gatorade
Premium Gatorade Tiger Woods
boot" page of this website‚ mergers between corporations sometimes are paid for with a combination of stock and cash‚ which provides a unique accounting challenge. The general tax rule is that you must pay capital gains tax on such a transaction‚ but only to the extent of "cash to boot" which is the amount of cash you actually received. (It’s technically called a Section 368 reorg.) In some cases‚ such as Fording Canadian and the Wyeth merger with Pfizer‚ the merger consideration is fully taxable--your
Premium Taxation in the United States Berkshire Hathaway Stock market
Merger Fundamentals Firms sometimes use mergers to expand externally by acquiring control of another firm. The objective for a merger should be to improve the firm’s share value‚ a number of more immediate motivations such as diversification‚ tax considerations‚ and increasing owner liquidity frequently exist. Sometimes mergers are pursued to acquire specific assets owned by the target rather than by a desire to run the target as a going concern. Mergers‚ Consolidations‚ and Holding Companies
Premium Takeover Mergers and acquisitions Corporate finance
Company mergers and the effect on employees and consumers. Context: · Employees · Management · Consumers Direction: · On-line research (On-line Magazines‚ News Groups) · Human Resources Why the topic is important: · Mergers have affected our group‚ and it is a growing trend in the American businesses today. Relevant Terms: Merger A merger is achieved when a company purchases the property of another firm‚ thus absorbing them into one corporate structure that retains its original identity
Premium Mergers and acquisitions
Industry to meet the development challenges of the 21st century).....[more] The case for Mergers and Acquisition in the Banking Sector in Nigeria Introduction The law on company mergers and acquisition is codified in the Nigeria Companies and Allied Matters Act of 1990. Like many sophisticated laws in Nigeria‚ the law on company mergers and acquisition has been largely untouched by the judiciary. There are very few decided cases in this area of the Nigerian law. In fact as noted by one pundit in an article
Premium Mergers and acquisitions