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Assignment 7

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6 views2 pages

Assignment 7

Uploaded by

juliasoaresag
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Julia Soares Agostinho

BUS-101-02

Prof. Fontes

- Research a recent merger between two companies and explain your

thoughts on whether this was a good move or not, provide rationale.

There are several reasons why two companies would decide to merge, for

example, reducing competition and having a larger market share, access to more

resources and capital, geographic expansion, and lower costs of production. However, if

it’s not a good merger it can also have negative effects, such as the company increasing

the prices of the products or services, issues with communication and cultural barriers,

job loss and even brand damage.

One recent example of merger between two large companies is the Microsoft

and Activision Blizzard merger, that happened in January 2022. Microsoft bought

Activision Blizzard, company that was a leading worldwide game developer, for $69

billion, so they could strengthen the Microsoft brand in the game scene, especially

through Xbox and the subscription service called Game Pass, and then they gained

control for various famous games, for example, the Call of Duty franchise, Guitar Hero

and Candy Crush.

The merger took time to be approved because the other companies were fearing

they would be cut out of the games and Microsoft would have an unfair advantage in the

market. In 2023, Activision Blizzard had to pay $35 million because of workplace

misconduct and allegations of sexual assault and mistreatment of women inside the

company, this could obviously hurt Microsoft and become a negative aspect of the
merger. However, overall, the merger was great for Microsoft, which was already a very

strong company and now has a great position in the gaming market, and according to

The Hollywood Reporter, the Xbox content and services revenue increased 61% year-

over-year after the merger so it really was a good move for both companies.

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