Mergers Within Media Companies And Organizations

1589 Words May 6th, 2016 7 Pages
What is strategic alliance? The book has it defines as “an association designed to provide benefits for each of its members.” Media companies form alliances for different reasons. Some of these reasons include the following, “providing access to new markets, increasing shareholder value, and reducing risk.”(Albarran 34) There are different types of strategic alliances, with the most common being mergers and acquisitions, joint ownerships, joint ventures, and formal and informal cooperative ventures. (Albarran 34) The expertise of people that work for the respective companies already are now able to work together and helps build new content. Combined expertise also helps open up doors to reach new target audiences and demographics. Many companies form alliances to help share in production and distribution costs. The purpose of this paper is to focus on different mergers within media companies and organizations. What exactly is a merger? Investopedia defines it as follows “A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.” To break it down in a more simplistic way, a merger is when two companies become one. Majority of the time, if not all the time, the decision to come together is a mutual agreement between both companies. Majority of the time when a merger occurs, the company that has the less rank tends to be the company that loses…
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