Mergers and Acquisitions Assignment Example | Topics and Well Written Essays - 1250 words

Mergers and Acquisitions - Assignment ExampleBut in acquisition only the acquiring company remains after completion of the process. The acquisition of whatsapp by facebook is discussed in the future(a) pages.Whatsapp is a relatively new free mobile messaging assistance company which allows user to displace messages to each other freely over the internet (It charges $1 as subscription charges after 1st year). It has a customer base of 450 million compared to facebook which has a customer base of 1.23 billion. Facebook is a giant in the plain of social network and whatsapp has the potential to be a giant in the mobile messaging service domain. Facebook has youngly completed its acquisition of Whatsapp for a whooping sum of $22 billion (Oreskovic, 2014). Among the big startup acquisitions that has taken place it ranks the biggest. Now the question arises why did facebook acquire whatsapp for such a whooping price? Among the many reasons just about are4. For whatsapp things could nt be better because facebook has said that it will allow whatsapp to grow independently and wont interfere. So besides the cash and instant recognition whatsapp founders are also granted freedom of making decisions.Whereas Facebook has well established its presence in the social network where it has established itself as the grocery store drawing card without any doubt, whatsapp on the other hand has all potentials to be a future leader in the mobile messaging service domain. In fact the growth rate of whatsapp in the send-off four years of operation is much higher that facebook had (A fact that was admitted by zuckerberg himself).Although this distinguish is pretty recent and its actual future implications and ramifications can be known at a later stage but, this deal is going to prove a major milestone and is actually a master stroke by Facebook CEO Zuckerberg. Effects of this deal are.2. Through this deal Facebook has actually eliminated his competitor from a seemingly misr elated