Question
Carefully address the following questions about the proposed target candidates. Your answer should be specific and back up your arguments by linking them to the
Carefully address the following questions about the proposed target candidates. Your answer should be specific and back up your arguments by linking them to the real (not hypothetical) characteristics of the merging firms, i.e., Facebook and the proposed target firm.
1. For each of the three proposed target candidates, identify at least two channels through which synergistic gain can be created. Hint: For example, synergy gain can arise when: (i) a target firm has a pipe line of innovative projects that can add new features into the existing Facebook products or lead to promising new products in the future; (ii) Facebook and the target candidate are technologically complementary; or (iii) the target has a presence in a fast-growing market which Facebook wants to enter. Here, do some brainstorming! To be specific, you should clearly identify the exact product, technology, market etc. that may lead to synergistic gains.
2. Discuss how likely Facebook can successfully integrate the target candidates business, technology, human capital, and other resources to realize the synergies that motivate the deal.
3. Identify at least three external/internal factors that can potentially prevent Facebook from successfully acquiring the proposed target firms (i.e., the deal goes bust).
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