Business -- Corporate Finance - Net Present A-Level Coursework

Open, View, and/or
Download this Document

Total Length: 908 words ( 3 double-spaced pages)

Total Sources: 2

Page 1 of 3

Business -- Corporate Finance - Net Present Value - Mergers & Acquisitions -- SLP Facebook

the Merger of Facebook, Inc. And Twitter, Inc.

Choosing a company to merge with Facebook, Inc. is a difficult task because Facebook, Inc. is a huge, valuable, cutting-edge company. When forced to choose a prospect for merger, I would settle on Twitter, Inc. (Yahoo! Finance, 2013). First, both companies are in the Technology/Internet Information Provider field, so there is some commonality of technology and service (McClure, Mergers and acquisitions: Definition, 2009). Secondly, Twitter is state-of-the-art technology, using social networking and microblogging using instant messaging, SMS or web interfaces (Twitter, Inc., 2013) with an undeniable level of popularity. Meanwhile, Facebook, Inc. is constantly striving for cutting edge forms of providing technological information. Consequently, the two companies share an aggressive corporate culture that pursues the most advanced provision of internet-based information (McClure, Mergers and acquisitions: Why they can fail, 2009). Third, Twitter is a highly lucrative company: though it was recently downgraded, the company's stock hit a 52-week high of $60.24 just today (Fazekas, 2013) and its intraday Market CAP of $30.84B (Yahoo! Finance, 2013) would be highly attractive to Facebook shareholders. Fourth, Facebook's gains of Twitter's market share, technology, efficiency and synergy in the daily internet communications business would all be valuable assets sought in a merger (Gaughan, Mergers, acquisitions and corporate restructurings, 2011, pp. 132-4): in sum, their combined business activities will significantly increase performance while decreasing costs.

Stuck Writing Your "Business -- Corporate Finance - Net Present" A-Level Coursework?

View All Our Example Business -- Corporate Finance - Net Present A-Level Coursework

Have A Custom Example Essay Written

Fifth, merging with Twitter will allow Facebook to diversify somewhat into provision of a communications type that it currently does not offer. Sixth, Facebook will be neutralizing a significant competitor by merging with Twitter. Finally, Twitter is still so much smaller than Facebook, Inc. that Facebook can control many of the decisions and logistics of merger. For all those reasons, Twitter seems an attractive company for merger with Facebook.

2) Facebook, Inc.'s Merger with Google, Inc. Or Yahoo, Inc.

Google, Inc. And Yahoo, Inc. would also seem to be likely choices for merger with Facebook, Inc., though they would be second or third choices. Both would be logical choices because both Google, Inc. (Yahoo! Finance, 2013) and Yahoo, Inc. (Yahoo! Finance, 2013) are in the Technology/Internet Information Provider field and both have notable shares of the market. Consequently, both would be attractive in those respects for merger. However, Google, Inc. would not be the first choice for merger for basically two combined reasons: it is even more powerful/valuable (Yahoo! Finance, 2013) than is Facebook, Inc.….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Business -- Corporate Finance - Net Present" (2013, December 16) Retrieved June 5, 2026, from
https://www.aceyourpaper.com/essays/business-corporate-finance-net-present-179955

Latest MLA Format (8th edition)

Copy Reference
"Business -- Corporate Finance - Net Present" 16 December 2013. Web.5 June. 2026. <
https://www.aceyourpaper.com/essays/business-corporate-finance-net-present-179955>

Latest Chicago Format (16th edition)

Copy Reference
"Business -- Corporate Finance - Net Present", 16 December 2013, Accessed.5 June. 2026,
https://www.aceyourpaper.com/essays/business-corporate-finance-net-present-179955
   

Open, View, and/or
Download this Document
order custom essay example