Examples of Successful Mergers and Acquisitions
The Sirius – XM merger
During the 2000s, Sirius and XM struggled as opponents to control the satellite radio markets. Later, in 2007, they decided to amalgamate their powers so they could provide more entertainment options to their customers (and to be honest, to eliminate each other’s greatest competitors so that they can have total domination over satellite radio market) A big problem arose for the merger when the FCC informed the companies that their respective licenses wouldn’t allow them to transform into one company. A year passed in filing paperwork and waiting. After which the two companies received a barrier that almost forced them to repudiate their agreement. For Sirius and XM, it took much time to gain approval. Yet eventually, the FCC allowed. Nevertheless, Sirius XM is a relatively new company, and it has provided more options to subscribers. It makes it a success story.
The Disney – Pixar merger
Few mergers across the world have brought more happiness to people like that of Disney and Pixar. Before the merger was implemented, Disney worked as Pixar’s distributor. Pixar created the movies, and Disney’s work was to ensure that they move into the hands of children and adults worldwide. When the distribution contract came near to end, that time, neither Pixar nor Disney wanted to be apart. Both the companies observed that instead of working separately, they could benefit most by working together. This lead to a flood of animated movies in the market, including WALL-E, Up, and Bolt. After the merger, Pixar identified that it had adequate money and workforce to release two movies a year. Without Disney’s help, that wasn’t proved true. For all those who adore Pixar movies perceive this merger as a big success.
The Exxon – Mobil merger
Exxon and Mobil existed as two wholly separate oil companies until 1999. They joined forces to form one of the greatest mergers in history in 1999. Exxon-Mobil got unmatched reach in the fossil fuels market due to this 81 billion dollar agreement. The merger agreement was such great that the FTC called for a realignment of the gas stations owned by these companies. The FTC worried that, without this realignment, the merged company would constitute a monopoly. How successful was this merger? In 2008, the resultant company earned over $11 billion in one quarter. Not the full year; just one quarter! Presently, it’s among the largest publicly held companies in the oil and gas sector in the world. Considering the numbers, it is evident that this is a greatly successful merger. Recommended:
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However, Mergers don’t work every time. Different companies have different philosophies that sometimes make it impossible for them to amalgamate their powers, even when such would benefit them. The above examples show that some mergers and acquisitions can work exceptionally well. During these mergers and acquisitions, corporate lawyers play a significant role. They are those facilitators who take the responsibility to accomplish all the paper works and look towards the possibilities favoring such deals, under the law.
