Conglomerate acquisition example. Samsung 2022-10-23

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A conglomerate acquisition is when a company acquires businesses outside of its primary industry. This type of acquisition can be motivated by a variety of factors, including the desire to diversify the company's portfolio, enter new markets, or take advantage of synergies between the acquired company and the acquiring company.

One example of a conglomerate acquisition is when General Electric (GE) acquired NBCUniversal, a media and entertainment company, in 2011. GE, a multinational conglomerate with operations in various industries such as aviation, healthcare, and renewable energy, saw an opportunity to expand its media and entertainment portfolio through the acquisition of NBCUniversal. The acquisition allowed GE to leverage its financial and operational expertise to help NBCUniversal grow and expand, while also providing GE with a new source of revenue and access to new markets.

Another example of a conglomerate acquisition is when Berkshire Hathaway, a multinational conglomerate led by investor Warren Buffett, acquired Duracell, a manufacturer of batteries and other portable power products, in 2016. Berkshire Hathaway, which has operations in a variety of industries such as insurance, finance, and retail, saw an opportunity to diversify its portfolio through the acquisition of Duracell. The acquisition allowed Berkshire Hathaway to enter the battery market and take advantage of Duracell's strong brand recognition and distribution network.

While conglomerate acquisitions can bring many benefits, they can also be risky. Integrating businesses from different industries can be challenging, and it can be difficult to achieve the desired synergies between the acquiring company and the acquired company. In addition, conglomerate acquisitions can be expensive, and there is always the risk that the acquired company may not perform as well as expected.

Overall, conglomerate acquisitions can be a strategic way for companies to diversify their portfolios, enter new markets, and take advantage of synergies. However, it is important for companies to carefully consider the risks and potential challenges before embarking on this type of acquisition.

What is Horizontal Integration? Definition, types and examples

conglomerate acquisition example

A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States PDF. This is when the companies are already very large in themselves that they both have achieved the maximum level of economies possible. Archived from PDF on September 23, 2019. The commission stated that during 2016—2018 the company advertised its Galaxy S7, S7 Edge, A5, A7, S8, S8 Plus and Note 8 devices as able to survive short immersion in water. The domain name www. Retrieved March 8, 2013.

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Difference Between Merger and Acquisition (with Example and Comparison Chart)

conglomerate acquisition example

Retrieved August 14, 2020. New York: Allworth Press. Retrieved June 30, 2021. Retrieved 9 June 2021. Retrieved September 8, 2020. Retrieved August 9, 2017.

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SEC Form S

conglomerate acquisition example

Retrieved February 12, 2020. Retrieved April 8, 2016. Retrieved 19 March 2012. Retrieved May 11, 2020. These are the form of external expansion, whereby through corporate combinations, business entities purchases a running business and grows overnight. Retrieved December 9, 2020.

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Google

conglomerate acquisition example

Retrieved December 2, 2016. Casey Bloys—who has been with WarnerMedia since 2004 as director of development at HBO Independent Productions , and was eventually elevated to President of Programming at HBO and Cinemax in May 2016—added oversight of WarnerMedia's basic cable networks and HBO Max to his purview. Companies seek for growth because that will lead to a greater control and power over the market and competition. Retrieved September 27, 2017. Retrieved December 22, 2020.

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Samsung

conglomerate acquisition example

Retrieved 6 September 2015. In a statement, she explained that the split plans were "significant next steps in our ongoing initiatives to increase shareholder value by building scale, increasing cash flow, sharpening management focus, and strengthening all of our businesses to compete effectively in today's increasingly digital landscape. Who do I owe my general duties to? Retrieved September 16, 2020. Retrieved April 8, 2022. Products and services Google generates most of its revenues from advertising.

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Studio system

conglomerate acquisition example

The Bell Telephone Company, a Massachusetts voluntary association, was formed on July 9, 1877, with Gardiner G. Retrieved 4 September 2010. Retrieved June 15, 2018. Archived from PDF on December 1, 2007. Retrieved January 27, 2022.

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Forte Group

conglomerate acquisition example

Retrieved September 25, 2020. Retrieved July 8, 2011. Investopedia requires writers to use primary sources to support their work. Mergers happen when companies want to expend, unite efforts, move into some new segments, or gain higher revenues and profits to maximize stakeholder value. Retrieved November 29, 2016.

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Assignment Essays

conglomerate acquisition example

This helps the organization to achieve its desired commercial position within the market. Retrieved May 6, 2007. Retrieved 28 March 2012. Retrieved March 23, 2021. Retrieved December 2, 2015.

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WarnerMedia

conglomerate acquisition example

Retrieved June 12, 2017. We have helped thousands of students with their Essays, Assignments, Research Papers, Term Papers, Theses, Dissertations, Capstone Projects, etc. Retrieved September 21, 2021. Retrieved April 23, 2012. Retrieved 5 February 2011. Other examples of companies with Horizontal Integration One of the most important goals of any commercial company is growth.

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