What Are Some Successful Big Business Mergers?
A merger is the term given to the integration of one business with another, with the control of the company shared by both owners. Through a merger, there are several benefits to be gained; these include: obtaining professional staff with knowledge, skills and business intelligence; access to funds and assets for new development; access to a wider customer base; increased market share; reduced competition; reduced overhead costs; diversification of products and services; acceleration of the business plan for long-term growth.
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NBC and Comcast Merger
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General Electric's NBC Universal, one of America's largest media companies, merged with Comcast, one of the largest cable television providers in the country. Approval by the Federal Communications Commission and the Department of Justice allowed the merger of two giants to go ahead. The merger has met with a fair share of opposition from people who believe that a joining of two large companies would damage the media landscape of America. It is anticipated that this merger will pave the way for other large mergers in the media industry, resulting in less local news, less competition for viewers and advertising, and fewer view points on the whole.
British Airways and Iberia Merger
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The merger between British Airways and the Spanish Iberia Airlines is complete, with the two companies merging to create one of the largest airline groups in the world. The benefits of the merger to customers include larger network operation with a view to future industry consolidation; bookings become easier, with customers being able to book through either airline's website or call centers; baggage allowances aligned for easy transfer between flights and ground staff of both airlines on hand to help passengers.
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AOL-Time Warner Merger
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A merger between America On Line (AOL) and Time Warner allowed each company to get a stake in the Internet future that was proving difficult to provide through individual efforts. AOL has helped Time Warner move onto the Internet scene in a mass fashion. For AOL, the merger is more about technology; despite success with the first stage of Internet usage, the company had not had much success in moving to broadband access, which is faster Internet access. Time Warner has Road Runner service that helped AOL in this regard.
Orange and T-Mobile
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Orange and T-Mobile signed a merger deal to create one of the UK's largest mobile phone companies, with a combined customer base of approximately 30 million users. The deal stipulated network sharing is limited to 2G signals for the present, with future plans for 3G signals to be added. Analysts predicted that T-Mobile will have the most to gain from the merger as it has been perceived as an underperforming network. Customers benefit by signing up for a free roaming service that allows the phone to roam to a different network when it loses signal.
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