Reference no: EM133575407

Question

Financial Report Eugene Soto, the Chief Financial Officer, meets with you to review the financial considerations of the upcoming merger. "Though Binary Frontiers Entertainment presents the strongest offer in terms of pure numbers, I must admit the two offers are closer than I initially thought," he says. "Let's go over what we know. "BFE is a larger company and their offer of cash, stock, and royalties on our existing products is more generous than Kaijusoft's. The Board will no doubt be happier to see us merge with an established brand, but I believe they would accept a recommendation of either offer, in the end. We know that BFE's business model relies on extensive focus testing, establishing long-running franchises, and lengthy development cycles. It's a stable approach, but rather inflexible and not always as popular with today's customers. "Kaijusoft, on the other hand, is an up-and-coming company. Their smaller size means their offer is weaker, but they'll have more room for our employees. Furthermore, they have more agility in their business model, though their love of innovation is a high-risk strategy. If we accept their offer, we'll be able to grow alongside them and reap the benefits-the deal would be closer.