edf40wrjww2CF_PaperMaster:Desc
Running Head: MERGERS
Mergers
Keith R. Jacobsen
Strayer University
It seems to me that business mergers have become a common practice in today’s market. It is common nowadays to pick up the newspaper and here of one-time bitter rival companies joining forces in their respective market. I can remember back three years ago when it was announced that my cell phone provider, Cingular Wireless, was buying AT&T Wireless. It didn’t mean much to me at the time. Sure, I had hoped for better service or cheaper rates, but I didn’t notice much change at all. I did notice the amount of advertising and communication of how AT&T Wireless is now Cingular. I even noticed how the Cingular logos incorporated the AT&T blue color into its signature orange themed branding. Now the news in today’s headlines is about AT&T buying Cingular Wireless. Wow! How does this happen? Couldn’t they have just done that three years ago and saved their marketing and PR departments from all this labor?
The reality is that while these mergers that take place seem to take place on a whim, there is actually a lot of hard work and financial analysis going into the decision. It may mean little change for the company’s customers, but big issues arise during these types of acquisitions. The companies must analyze whether or not the merger makes sense financially, logistically, and strategically. The decision must be made to benefit operations and financials for the company, but it cannot have damaging results for the public. That can occur when the merger leads to a monopoly within their respective m ...