Reference no: EM132354558

Merger & Acquisition Assignment Amazon

1. Each group member is to identify a unique acquisition that was completed within the past year. Permission from the instructor is required to study an acquisition older than one year. ‘Claim' your acquisition with a post in the assignment's group discussion board.

Write a 500 to 1,000 word synopsis of the transaction in paragraph form. At a minimum, your synopsis must address each of the below topics.

You must also include a reference page that includes a minimum of three sources that are cited using APA. The reference page does not count towards the word limit. Your synopsis should be submitted in the group discussion board so that your group members can read your research.

a. Provide a brief summary of the target firm and acquiring firm involved in the transaction.

b. Was the transaction a merger or a consolidation? Explain.

c. Was the transaction a horizontal, vertical, or conglomerate acquisition? Explain.

d. Was the transaction funded with cash, stock, or both? What was the total value of the acquisition (i.e. how much did it cost the acquiring firm)? Explain.

e. What was the stock price reaction for the target firm and the acquiring firm when the deal was first announced? We know how mergers affect the value of target firms and acquiring firms on average. Was this transaction consistent with the average change in values? Explain.

f. Was the transaction friendly or hostile? Explain. If it was hostile, what takeover defenses did the target firm employ? Explain.

g. What were the stated synergies that the acquisition was supposed to achieve? Classify each stated synergy as one or more of the following: marketing gains, strategic benefits, market power, economy of scale, economy of vertical integration, technology transfer, complementary resources, elimination of inefficient management, tax gains from net operating losses, tax gains from debt capacity, tax gains from surplus funds, and reduced capital requirements.

Attachment:- Assignment Merger Acqusition Amazon.rar