Question

Helvetica Neue Аа 111 lil B I U abe X, XA A 3 4 6 1. Describe a recent merger or acquisition within the last two years. Describe the transaction in details: o What industry did the transaction take place in? What kind of industry is it? Consolidated or fragmented? . According to the distinction between mergers and acquisitions, was the above transaction a merger or an acquisition? Why? o What was the reason or rationale for the transaction? o Provide at least two comments on your classmates' examples. 2. Give an example of product bundling strategy.

Answer 1

An example of a recent merger & acquisition activity is the acquisition of "WhatsApp" by Facebook, which is a technology giant. The industry in this case is consolidated with players like Google, Facebook and Apple dominating the technology landscape.

This transaction was an acquisition with Facebook acquiring the entity and integrating peope and resources into Facebook.

The reason for the acquisition was that Facebook realised that number of users of the message platform can be valuable market place and help Facebook increase its reach.

The acquisition helped Facebook in acquiring more users in emerging countries. Also, it can be used for additional monetary benefits such as designing of payment applications based on this.

An example of product bundling strategy is that when along with purchase of a car, the dealer is also able to sell the insurance policy on the car as a package deal. So the customer gets a single window solution and dealer enhances it's revenue.