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Merger and Acquisitions

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Merger and Acquisitions
INTRODUCTION

M & S (short phrase mergers and Acquisitions) is to enter the sale and merger of businesses in the market. These two concepts often go together because one or more of the same, pretty much to cases where one cannot distinguish the difference and do not have enough information to comment (Anon 1, N.D)

M & A are done in some cases are as follows:

Basic principles: to proceed with the acquisition and merger of a company is to create new value for the shareholders that maintain the old state is not achieved.

In terms of value: the company after conducting M & A must be greater than the sum of the present value of both as a stand-alone company.

Competitiveness: Strong companies buy other companies is often to create a new company with high competitiveness, achieve cost-effective, larger market share, operational efficiency more.

Consensus: The shareholders have agreed this with the majority of the votes cast. Acquisition and merger of Microsoft and Yahoo! Have failed due to not enough consensuses necessary (Anon 2, N.D)

Since its establishment until now Facebook has acquired a wealth of different companies but deal the most prominent of which is the acquisition of Instagram as well as ConnectU. Actually, ConnectU did not exist in a court settlement and acquisition of intellectual property rights previously held by Friendster opponents. Most companies headquartered in the United States and the surrounding San Francisco Bay area were acquired by Facebook (Anon 3, N.D)

CEO of Facebook Mark Zuckerberg has stated that: “ We have not once bought a company for the company. We buy companies to get excellent people. To have a real culture of the business it is important to ensure that we are recruiting, the best people. One way to do this is to focus on the acquisition of great companies with great founders” (Anon 4, N.D)

Therefore, We can see the success in the acquisition other companies of Facebook, and hit is Instagram on



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