AOL & Verizon: One of the examples that I find interesting is the merger and acquisition of Verizon & AOL. According to the article, Verizon had reached an agreement to acquire AOL for $50 a share in a deal valued about $4.4 billion. The acquisition was very successful for both companies. It has brought great value to their stocks in the market and mutual interests were successfully achieved. Acquiring AOL has great role in leveraging Verizon’s network at the same time increasing AOL's strength in advertising in the areas of video and mobile. This would be considered unrelated diversification for having two different industries combining media with technology. The managerial motives were very obvious for both companies. For AOL, it’s going to be great advantage for their executives that it could reduces risks of losing their jobs. In today’s market, both technology and media are growing and expanding rapidly and recently AOL was on the downward trend in their industry, where they weren’t able to keep up with …show more content…
Steve Jobs to become board member at Disney. What really happened in this merger & acquisition was expected sooner or later. It has similar instances to the previous article but here the company who is striving to get the acquisition is more vulnerable to many potential risks in the industry. Competitors such as DreamWorks Animations had surpassed Disney at the box office as had Pixar. This is a related diversification for merging two similar industries that have the same plan and purpose. Disney CEO Robert Iger highlighted that Pixar will play effective role in driving growth across their business. All of Pixar movies have been great success in the box office. One of their greatest works was Toy Story and Finding Nemo. It’s very obvious that executives are acting in the interests of shareholders for focusing on market expansion and creating more demands for their creative