PerfectCustomPapers | A company that has acquired another company (i.e. Disney acquired Pixar)

A company that has acquired another company (i.e. Disney acquired Pixar)

Select a company that has acquired another company (i.e. Disney acquired Pixar) or select two companies that have merged (i.e. Exxon and Mobil) and write a case study about your selection. Do not write about companies you have previously written about in this class.

Write a two-page summary of the merger or acquisition to include:

1 – the reasons why it occurred and when it occurred

2 – the approximate size of each company before the merger

3 – discuss the culture of both companies before and after

4 – was the merger or acquisition successful or not and why

5 – the state of the company now

Sample Answer

Case Study: Microsoft’s Acquisition of Activision Blizzard (2022)

1. Reasons and Timing:

In January 2022, Microsoft announced its intention to acquire gaming giant Activision Blizzard for a staggering $68.7 billion. This move aimed to:

Expand Microsoft’s gaming presence: Gain a significant foothold in the mobile gaming market through Activision Blizzard’s popular titles like Candy Crush and Call of Duty.
Strengthen its subscription service Game Pass: Bolster Game Pass with iconic franchises, attracting more subscribers and driving recurring revenue.
Develop metaverse capabilities:

Full Answer Section

Counter competition: Gain an edge against rivals like Sony and Tencent in the fiercely competitive gaming industry.

2. Pre-Merger Company Sizes:

Microsoft: Market capitalization of around $2.3 trillion, a leading developer of software, personal computers, and gaming consoles (Xbox).
Activision Blizzard: Market capitalization of approximately $60 billion, renowned for popular gaming franchises like World of Warcraft, Call of Duty, and Overwatch.

3. Company Cultures:

Microsoft: Known for a relatively conservative and corporate culture, emphasizing professional conduct and employee satisfaction.
Activision Blizzard: Faced accusations of workplace harassment and discrimination, leading to employee protests and regulatory scrutiny.

4. Merger Success:

The jury is still out on the long-term success of this merger. While it significantly boosted Microsoft’s gaming portfolio and Game Pass subscribers, several challenges remain:

Regulatory hurdles: Approval from various countries is ongoing, with concerns about market dominance and potential anti-competitive practices.
Cultural integration: Merging two very different company cultures requires careful management to avoid clashes and maintain employee morale.
Resolving legal issues: Microsoft must address Activision Blizzard’s past controversies and rebuild trust with employees and the gaming community.

5. Current State:

As of October 2023, the merger process is ongoing. Microsoft faces continued regulatory scrutiny and legal challenges, while integrating Activision Blizzard’s business and addressing cultural differences remain ongoing tasks. The ultimate success of this acquisition will depend on navigating these challenges effectively and delivering on its strategic goals.

Additional Notes:

This case study provides a brief overview. Further research is recommended for a more in-depth analysis.
The impact of the merger on various stakeholders, including employees, gamers, and other industry players, can be further explored.
Ethical considerations, such as the potential impact on competition and diversity in the gaming industry, deserve further discussion.

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A company that has acquired another company (i.e. Disney acquired Pixar)

Sample Answer

Case Study: Microsoft’s Acquisition of Activision Blizzard (2022)

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