4 TECH AND MEDIA COMPANIES THAT HAVE BENEFITED FROM MERGERS

WHY DO COMPANIES MERGE WITH OTHER COMPANIES?
But why exactly do companies take part in mergers and acquisitions? There are many reasons which contribute to this decision, and most of them are quite positive. The primary idea is that a company merges with another because it lacks in some departments or has some weaknesses. They merge with companies that have the strengths they lack whether it be in resources, stocks, or any other department and develop a synergy which allows them to increase their productivity and increase the quality of their performance and products, all at a decreased cost compared to if they were to do it alone. Some other reasons would include bigger companies looking to eradicate potential competitors in their field or industry. By forming a merger or acquisition with similar, competitive companies, it can increase its own market share and audience. It also allows them to grow in lesser time and with lesser effort. In the past, we have seen some iconic, surprising and incredibly successful mergers and acquisitions, many of which we cannot imagine the world without today. Let us look at five of the biggest mergers in history.

• 1. SIRIUS AND XM RADIO
• 2. VODAFONE AND MANNESMANN
• 3. AT&T AND BELLSOUTH
• 4. DISNEY AND PIXAR

1. SIRIUS AND XM RADIO
The face of satellite radio changed in 2008 when Sirius Satellite Radio decided to partake in a merger with XM Satellite Radio which at the time was actually its competitor. The executives of either of the two companies believed that this would allow the programming costs to decrease as the issue of overlapping channels will be eradicated. They announced the merger and after approval by the FCC, have proven to be quite successful thus far. Today, Sirius XM Satellite Radio is a major satellite radio provider in the United States.

2. VODAFONE AND MANNESMANN
This may just be the largest merger and acquisition in the history of business as Vodafone sought to acquire Mannesmann that originated from Germany. While some reluctance was showed by the Germans, the $180 billion deal has only proved to be highly successful. It has allowed the combined organization to become the world's largest mobile operator.

4. AT&T AND BELLSOUTH
In 2006, AT&T sought to expand their reach into the more rural and untouched areas of the United States and establish their dominance amongst the competition in the corresponding market. By acquiring BellSouth, the smaller company found itself now a part of a very successful and widely growing mobile company that provided a number of services.

4. DISNEY AND PIXAR
Can you imagine a world where Frozen, now a world renowned phenomena, was never made? Well, if it weren't for the merger between Disney and Pixar, we would have never been able to see plenty of amazing work in animation. The merger has allowed both companies to butt their heads and work together and the successful results can be seen in the form of some amazing movies, some of them being Up, Inside Out, and Brave.

Conclusion
Despite there also being some failed attempts, it can be said that mergers by bigger, stronger brands have more times than not been proven to be quite successful for smaller companies and have often produced magnificent results for all parties involved.
This blog is researched and authored by Rahul Kumar Paul Ghugloth and Akash Gupta.
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