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Case study (merger and acquisition)
1. WhatsApp had over 450 million active users and was growing faster than any other company. 2. Facebook wanted to gain WhatsApp's large and loyal user base. 3. The acquisition helped Facebook expand into mobile messaging and compete with other messaging apps. 4. Mark Zuckerberg believed gaining WhatsApp's users was important for Facebook's future growth and success in mobile.
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Case study (merger and acquisition)
- 2. CASE STUDY Case OfMerger : Maruti And Suzuki Maruti Limited Incorporated Under The Companies Act In The Year 1971 Sanjay Gandhi (Congress Leader) As Its 1st Managing Director , The Purpose Of The Company Was To Design Manufacture And Assamble A Small Car For The Messes , In Year 1981 The Government Salvages Maruti And Start Scouting For An Active Foreign Collaborator , Suzuki Selected Due To It knows How To Manufacture Small Cars And The Company Maruti Udyog Limited Is In Corporated In 1981 , Suzuki Acquire 26 % Stake In The Company And The Factory Is Setup On The Outskirts Of Delhi In Gurgon The Journey Of This Merger Starts With The 1st Product Maruti 800 Launch In 1983 After That The Company Maruti Suzuki Made Ther Various Cars On All The Segments
- 4. MODELS LAUNCHING YEARSEGMENT Omni 1984 Minivan Gypsy 1985 SUV WagonR 1999 Hatchback Swift 2005 Hatchback Dzire 2008 Sedan Eeco 2009 Minivan K10 2010 Hatchback Ertiga 2012 Mini MPV Alto 800 2012 Hatchback Celerio 2014 Hatchback Ciaz 2014 Sedan Baleno 2015 Hatchback S-Cross 2015 Mini SUV Vitara Brezza 2016 Mini SUV Ignis 2017 Hatchback maruti ignis specifications 2017 SUV PRODUCT PORTFOLIO OF MARUTI SUZUKI
- 5. THE SUCCESSFULL MERGERREPORT OF MARUTI SUZUKI
- 6. Question :-Why themerger between maruti and Suzuki was successful ?
- 7. CASE STUDY Case ofAcquisition of WhatsApp by Facebook In February 2014 Facebook announced the firm’s biggest acquisition ever. Facebook CEO Mark Zuckerberg managed to agree on the deal with WhatsApp founders Jan Koum (38) and Brian Acton (42) for astonishing $22 billion. Reuters stated that acquisition was the sixth biggest in technologies and biggest ever in history of acquisitions of software companies. I will look into some details of the acquisition in this paper. Also, I will try to bring up some information on why this merger happened and why it was important for Mark Zuckerberg to complete the deal.
- 8. The story ofWhatsApp When Jan Koum the Ukrainian-born immigrant who dropped out of college and ex-Yahoo engineer Brian Acton founded WhatsApp company they probably didn’t even dream about what happened in three years later. From the moment of opening the newborn firm, both founders wanted a different kind of company. Instead of developing so popular online games, rapidly growing business with promising returns, they focused on building a clean, superfast communication service. In the moment of announcing the acquisition, WhatsApp had more than 450 million of active users. Application reached that number faster than any other company in history. When comparing with Facebook, they went over 100 million users in something over 2 years. Facebook needed one more year.
- 9. Key factors enablingmerger • Back in April 2012, Facebook bought Instagram, iPhone application of the year in 2011, for 1 billion dollars. And some said it was overpriced. • What must these people thought when Mark Zuckerberg announced new buy operation worth $19 billion at first word and nearly $22 billion when signing? And why was he willing to do so?
- 10. Merger details Facebook offeredunimaginable amount of $19 billion to buy WhatsApp. Koum holding bigger share in WhatsApp was to get about $6.8 billion and Acton $3.5 billion after taxes. Jan Koum was also granted a seat on the Facebook board with salary of 1 dollar (the same as Mark Z). Facebook gave 177.8 million of its Class A common stock shares and $4.59 billion in cash to WhatsApp’s shareholders. Fortunately for WhatsApp owners, Facebook’s share value had risen from February 2014 to October 2014 when deal was realized by another $2.8 billion. In the end, acquisition was worth $21.8 billion. The acquisition of that size had to go through regulatory approvals. Companies were worried and it was said that WhatsApp may hurt players such as Deutsche Telekom, Orange and Telecom Italia with its plan to offer free voice calls to customers. However, The European Commission said the deal would not hurt competition.
- 11. Question :- Whyfacebook spend their 19 billion on acquiring whtsapp ?