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Academics and practitioners have identified several major reasons that drive firms merger, acquisition, and breakup decisions. Correctly identify the term or motive for the
Academics and practitioners have identified several major reasons that drive firms merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Description AcquireYou Corp. bought AcquireMe Inc., which has assets with a value considerably lower than its market value. If two firms merged, the value of the new company would exceed the current pre-merger values of the individual firms. A merger is driven by the managers' desire to increase the size of the firm rather than by strict economic analysis. In 2009 Time Warner Inc. announced the split-off of its ownership in Time Warner Cable and its AOL unit with the expectation that the split-off divisions would operate better and more profitably as independent entities. Term or Motive for Merger
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