Mergers and Acquisitions
Mergers and Acquisitions: - Assuming rationality from all players, mergers and acquisitions deals originate out of specific strategic corporate requirements. In reality, the advisors (both legal & financial) and middlemen also play a significant role in the original activity. Acquirers / targets may focus on competitors for a potential acquisition/sell off. Buying competitor implies horizontal integration. There are lot of risks (financial as well as operational) involved and challenges in mergers and acquisitions face by company which is acquiring and target companies as which are listed below:-
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. (Facebook acquiring WhatsApp)
There are many reasons that a company consider before doing any merging or acquisition activity. Hence it can be safely considered that Facebook too has considered the factors related to the same.
First of all, the number of users of WhatsApp is around 450 million. WhatsApp was initially released in the year of 2009. In the span of just over 4 years having over 450 m