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Critical Role of Personal Department
Added on -2019-09-13
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Merger & Acquisition
Table of ContentsIntroduction......................................................................................................................................2Problem and challenges...................................................................................................................2Recommendation.............................................................................................................................2Implication.......................................................................................................................................3Resources required...........................................................................................................................3Benefits of recommendation............................................................................................................3Milestones, risk & assumptions.......................................................................................................3References........................................................................................................................................4
IntroductionIn this present paper, we will discuss the merger and acquisition between the Microsoft and LinkedIn. The Microsoft has acquired the LinkedIn by paying $26.2 Billion. It is the biggest heftiest acquisition in the software industry. It is a type of conglomerate merger and acquisition because both the companies have different industries and business process. Problem and challengesThe problems and challenges are explained below: 1.Unprofitable assetThe asset ofLinkedIn is not profitable for the company due to which is a major challenge for the company because the acquisition is mainly made to add synergy to an organization, but the company has faced the problem of managing the unprofitable assets.2.No clear path forwardThe business plan of LinkedIn is not viable due to which the company has faced the major challenge to integrate the LinkedIn with their company which helps to provide the competitive advantage to the company.3.Poor revenue forecastThe revenue forecasting of LinkedIn is poor revenue which is $11 Billion due to which the company faced the problem of generating the higher revenue by the acquisition of the company. The nature of the business is not providing synergies to the business which is a major problem for the company (Piesse et al., 2013). 4.Brand image
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