Guidelines for Mergers and Acquisitions
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Added on 2020-05-28
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Organization Development and Change 8 Running Head: Organization Development and Change Organization Development and Change Mergers and Acquisitions Contents Introduction 2 Background of Organization 2 Why Organizations involve in M&A 3 Merger 4 Acquisition 4 Reasons behind M&A 4 Successful Guidelines for Mergers and Acquisitions 6 Guidelines Facebook followed 6 Comparison of Guidelines for Mergers and Acquisitions 7 My Rules of Mergers and Acquisitions 8 Conclusion 9 References 10 Introduction Facebook is known to b e as one of the top most social media companies which has brought the
Guidelines for Mergers and Acquisitions
Added on 2020-05-28
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Running Head: Organization Development and ChangeOrganizationDevelopment and ChangeMergers and Acquisitions
Organization Development and Change 1ContentsIntroduction.................................................................................................................................................2Background of Organization........................................................................................................................2Why Organizations involve in M&A.............................................................................................................3Merger.....................................................................................................................................................4Acquisition...............................................................................................................................................4Reasons behind M&A..............................................................................................................................4Successful Guidelines for Mergers and Acquisitions....................................................................................6Guidelines Facebook followed.................................................................................................................6Comparison of Guidelines for Mergers and Acquisitions.........................................................................7My Rules of Mergers and Acquisitions........................................................................................................8Conclusion...................................................................................................................................................9References.................................................................................................................................................10
Organization Development and Change 2IntroductionFacebook is known to b e as one of the top most social media companies which has brought theworld closer. It was founded by Mark Zuckerberg in 2004. It initially was created for collegestudents who used to attend special schools but within just 10 months, the number of joinerswent up to 1 million users. In 2017, the number reached up to 2 Billion users[ CITATION Ste18 \l1033 ]. Mark’s invention was and is growing day by day. With this growth happening, he went onto acquire 66 big and small companies. Out of them, the largest acquisition done by Facebook isWhatsApp. FB purchased it for $19 Billion in 2015. There were other fascinating acquisitionstoo done by FB. Like Instagram and Virtual Reality. If the total amount spent on all theacquisitions done by Facebook is taken, the number is so magnificent that it cannot be seen inany other acquisitions. The number comes down to $22,651,000,000[ CITATION Chr15 \l 1033 ].Expanding the business is like just a step ahead after any idea is implemented. Zuckerberg backthen realized that mobile was the future. Hence, Facebook bought Beluga which was a mobilemessaging company that developed group messaging. Today, Facebook is the second mostpopular mobile messaging app in world[ CITATION Alo16 \l 1033 ]. WhatsApp was one of thepopular messaging app for smart phones. After buying WhatsApp, Facebook only grew evenmore and more. This was one of the most important acquisitions by Facebook[ CITATION Tik16 \l1033 ]. Background of OrganizationFacebook was founded July, 2004 by Mark Zuckerberg. The company focuses on creating theproducts which helps in connecting with people through computers, mobile phones andapps[ CITATION Bio18 \l 1033 ]. Also, it is focused to let people know about the happenings of theworld through it. People can easily share their ideas, pictures and videos too on the sameplatform. Products that the company provides are Facebook, Instagram, Messenger andWhatsApp. It also engages itself in selling advertising placements to marketers. These
Organization Development and Change 3advertisements let the people who are marketing them or their product reach to the people basedon demographic trends. Marketers purchase the packages to market their product[ CITATION reu18\l 1033 ]. The company headquarters are in California and the numbers of employees in thecompany are 23,165 until 30th September[ CITATION new18 \l 1033 ]. The daily active members are1.37 Billion and monthly active members are 2.07 Billion as of 30th September. MarkZuckerberg was 23 years old when he was studying Psychology from Harvard University. At thisage, he earlier had already developed many apps as he was a keen computer programmer. In2004, February, he created Facebook for college students. Within a day, over 1200 studentssigned up to the website and in a month, there were half of the college students who were a partof Facebook. Later other universities like Boston etc. also promptly responded to it and by 2005,it had 1 Million subscribers. In 2006, Google etc. companies wanted to buy Facebook from Markbut he refused to sell it after all[ CITATION the18 \l 1033 ]. After a year, the subscriber numbercame up to 30 million and some of the very famous people also became a part of Facebook.Today, it has more than 2 Billion users and it has acquired over 66 companies till now. Themajor companies are Instagram which Facebook bought in 2012 for $1 Billion. Later in 2015, itacquired WhatsApp too for $19 Billion, though WhatsApp could work independently asusual[ CITATION Par14 \l 1033 ]. The idea for Zuckerberg behind buying WhatsApp was not to earnmoney but to see the growth in terms of users and connectivity. WhatsApp is ad free so it isloved by all the users. Also, it charges $1 per year with the users after giving it free for the firstyear of subscription. This app was founded by two former yahoo executives Brian Acton and JanKoum. Facebook agreed to a deal of $19 Billion with the addition of $3.6 Billion more so thatthe WhatsApp employees should stay onboard with Facebook.Why Organizations involve in M&AMergers and Acquisitions also known as M&A, have become so common these days as thecorporate world is growing. If any merger or acquisition talks place in the market, it is verylikely that everyone would be having the knowledge of the incident through news, articles,papers, TV or any social media. The term means that the value of the two companies’ combinedis more than those two companies when separated. It is basically the collaboration of the two.
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