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Sony and Sony Ericsson entered into a merger where Sony acquired stake of the Ericsson. The merger would see the two companies combine forces in technology in order to be competitive in the telecommunication sector (Schemerhorn 218).
The Sony revolution began in 1946 after the establishment of the Tokyo Telecommunications Engineering Corporation in Nihonbashi in Tokyo. To embark on research and invention of telecommunication devices, 190,000 yen was set aside as the starting capital. It was during this period that two devices were invented, Magnetic tape and first tape recorder. This showed a new beginning for the company, and it was after that it was branded the name Sony Corporation. After this advancement, the company afterwards invented the first portable television which led to the establishment of Sony Corporation of America in the United States (Schemerhorn 18).
A great improvement occurred for Sony over the decades, and numerous inventions were made among them being the invention of the Triton color television system which saw it get the initial Emmy award. In attendance, invention of the world’s original compact disc player as well as the Columbia pictures entertainment which was then renamed as Sony Pictures Entertainment in the year 1991. The company remained strong and prosperous following the wise strategies of management that was utilized. Sony worked together with Google to achieve its business goals in the sale of the cellular phone which saw Sony achieve affluent merchandising. Moreover, Sony was able to expand its area of connectivity. Both companies were to benefit from the partnership. Many would have thought that maybe the company was getting weak, but the Chairman of the company argued that the partnership was to help Sony achieve its market objectives. From then henceforth, Sony realized great market from all over the globe making it a strong independent company before merging with Sony Ericsson
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The merged companies enter into a deal and forge ahead as a single entity. In mergers, stocks for both companies must be surrendered and a new company stock is put in place. The merging companies should often have nearly the same or equal valuation. Acquisition refers to an act where one company agrees to buy assets and liabilities of another through a signed deal.
Merging business may be agreed or necessitated by the need of expansion, attracting new markets, gaining market share, improving productivity and/or combining the factors of production in each separate entity to achieve a positive growth as one entity. Depending with the financial, operational and the long-term goals of the merging firms, clauses are spelt out to benefit the involved firms in running the merged entity.
These types of transactions happen very often in the finance sector. Firms purchase other firms for a number of reasons. Whatever reasons prompt a particular deal, M&A are thought to be successful when multiple synergies are achieved and when the business combination increases the net cash flow of the merged business more than what each firm could have achieved on its own.
This paper talks about the business and the corporate level strategy of the American Airline Group., and the strategies in which the companies forming the American Airline Group used to merge. This paper also contains information about a possible company
However, a business’s decision to acquire or merge with another business needs to be realistic so that the additional resources that need to be applied to uplift the acquired business are provided for. Many organizations have gained
nto the other and the less important firm loses all its identity while the other superior firm retains its identity and become stronger by commanding more power in the market. The merged corporation is completely extinguished while the surviving firm takes over all the rights,
tions related to merger and acquisition, the following discussion will consider evaluating the pros as well as the cons of a similar deal undertaken by Shire/NPS to analyse whether such a decision will serve beneficial for the shareholders of both companies.
In order to expand
6 Pages(1500 words)Essay
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