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Facebook ( Acquirer ) has current value of $ 1 0 0 0 and seeks to acquire Messenger ( Target ) with a current market
Facebook Acquirer has current value of $ and seeks to acquire Messenger Target with a current market value of $ The financial manager at Facebook believes that the two firms combined would be valued at $
a Calculate the gain synergy to the merger.
b Calculate the NPV of the merger if Facebook offers $ for Messenger.
c Discuss the distribution of gains if Messenger will only accept an offer of $
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