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merger and acquisition: a story of success and failure - Research Paper Example
Author : zwaelchi
Finance & Accounting
Pages 15 (3765 words)
ASSESSMENT OF THE FAILED ACQUISITION OF SKYPE BY EBAY 1. INTRODUCTION Businesses in the contemporary business world are striving for growth and success in the deeply challenging environment. In such competitive environment, acquisition strategy is most seductive when corporate aims to boost the performance of the organization in the long term and at an inched pace…
According to the Harvard Business review, the yearly expenditure incurred by the companies on the acquisitions is more than two trillion (Christensen, Alton, Rising, & Waldeck, 2011). Bitter truth of the story lies in the fact that organizations seduced to acquisition for the fast paced growth fail with a great number. Nearly 70 to 90 percent of the acquisitions fail to achieve the objectives set forth as the ground for the acquisition (Christensen, Alton, Rising, & Waldeck, 2011). The percentage of failure self evidences the fact that organizations adopting acquisition strategy have failed to learn the lessons from failure examples. Examples of the failed acquisition include prominent names of the corporate world across the globe. Furthermore, the failure examples are spread across industries from media to technology, oil to banking and so on. Some of the big names that top the list of the failed acquisition strategies include Microsoft (Rosoff, 2011), Kmart, e-Bay, AOL, Daimler-Benz and Bank of America (Huffington Post, 2013) etc. In the similar context, the underlying report is aimed at assessing one of the biggest failed acquisitions from the successful technological companies. ...