Films as Mergers and Acquisitions Firms merge with or takeover another company for different reasons: Growth; The fastest way for growth to occur is to be involved in a merger and because of this it is the main basic factor for merging, diversification; entering different markets in order to cut the dependency on current product range (conglomerate integration), market power; when two rival companies merge the new company has an increase in market power and reduces the competitiveness of the market. A firm may also merge with the intent to asset strip but this is a short-term attempt to increase cash flow and is more likely to involve a horizontal integration type of merger. There are four main types of business integration, horizontal, vertical backward and forward and conglomerate integration. Vertical integration occurs when one firm takes over or merges with another in a different stage in the production process where-as a horizontal integration occurs when one company merges with another at the same stage of production in the same industry, out of the four types of integration this is the most common with such examples like EasyJet taking over Go and Coca-Cola taking over Orangina. Synergy is a commonly used word to explain why mergers and takeover occur; it means that combining the businesses will produce one enterprise that is more powerful and efficient. Synergies are expected when mergers occur due to the ability to take advantage of several economies of scale, such as distribution and production. However many firms under-estimate the effects of diseconomies of scale that two large business merging can bring. A furthe... ... middle of paper ... ...et costs because of the increased competition. There are people who see the merger as not a good idea and resources could be better spent, Critics complain that the company has run out of ideas and the merger is a last ditch attempt to revive the business by an increasingly desperate management. Instead of taking on more shops, Boots should be looking at ways of getting the most from their existing floor space, cutting costs and polishing up their brand name, they say.Critics also complain that a merger very rarely delivers on all of its promises, and destroys shareholder value rather than enhancing it. Bibliography 1. BBC news source, Monday 3rd of October 2005 2. BBC news source, Friday 17th of February 2006 3. BBC news source, Monday 3rd of October 2005 4.BBC news source, Monday 3rd of October 2005
I am interest in the study of this topic because I am curious about the financial effects of such a merger.
Vertical integration in studio system The term "vertical integration" refers to the structure of a marketplace, which is integrated (rather than segregated) at a variety of crucial levels. In the case of the motion picture industry, the studio system established a market in which the studios owned production facilities, distribution outlets, and theaters. In other words, the studios controlled every level of the marketplace from the top down, from production to exhibition. "Vertical integration" began in the 1910s and inspired the postwar consolidation of the studio system as national distribution companies, such as Paramount merged with production companies, such as Famous Players and Lasky and subsequently began purchasing theater chains. All of the major studios in Hollywood (Paramount, MGM, Warner Bros., etc) owned theater chains; the minors, Universal, Columbia, and United artists, did not.
28 April 2014 . WGBH. PBS. 2010. 25 April 2014 .
The Meaning of Vertical and Horizontal Integration Horizontal integration is where an organisation owns two or more companies, on the same level of the buying chain. An example of this is the First Choice Group; they own First Choice Travel Agency and First Choice Hypermarket, both of which are on the same level of the buying chain. The advantage of horizontal integration is that it can increase the company’s market share. Another good example of this type of integration is when EasyJet purchased the airline Go from British Airways. Now EasyJet and Go both operate under the company name of EasyJet.
Outline the main changes the paramount decree effected on the structure of the American film industry and discuss the measures the ex-studios took to remain in control of the film market.
Media is very powerful. It devoured the major industries of the modern world. Everything from television shows to social media networks is under the umbrella of almost omnipotent media. The most interesting fact is that people have been addicted to it since long time ago, and this addiction keeps expanding exponentially. What attracts people so much? How media is capable in controlling society so well? Why everyone is so dependent on it? The uses and gratifications research can be very helpful to find out answers to all these questions, as this type of research seeks to understand why and how people actively seek out specific media.
In the horizontal integration, the company product range is from a wide clientele. That is they sell product either clothing or luxurious foods from different manufacturers. These give them the edge since the products they offer a variety for the customers to choose from, and hence they can shop less than one roof (Cole, 1997). In the vertical integration strategy, the firm will deal substantial with products from a single supplier and M&S gets the exclusive rights to deal with the product and its supply to the market. This is necessary when the company aim is to serve an identified target market which is exclusive and has the potential to sustain and grow the company substantively. These employ a tar...
As advance technology of fiber-optic developed and is on the rise, everyday there is another story about entertaining movies on demand and streaming online is with ease. Those developments which let movie’s viewers sit in the comfort of their home or anywhere with access to the internet can stream instance movies with a push of a bottom. They no longer need to make a trip to the movie’s stores for movies rental and return, so that is why movie shops fail and filed for bankruptcy bring a symbolic close to the “let’s go rent a movie” era. Blockbuster LLC, formerly Blockbuster Entertainment Inc., both owned and franchised American-based giant provider of home movie and video game rental services through video rental stores, later adding movies by mail, streaming online and video on demand. Due to the peak of fiber-optic and competition from companies such as Netflix, Redbox, and GameFly, Blockbuster became the victim of digital media and filed for bankruptcy on September 23, 2010 due to significant lost in revenue.[3]
In addition to the pro-competitive economic effect some firms also experience what is known as a post-merger which is basically an incentive for a firm to raise downstream competitor costs by raising upstream market costs. Hence the increased price pressures the previously established downstream prices which cause conflict.
How could a company that was built into a multibillion dollar empire fail less than two decades later? Blockbuster Entertainment started with one store in Dallas in 1985 and rose up to become the dominant force in the movie rental industry. They were acquired by Viacom, at the pinnacle of their success, for $8.4 billion in 1994 and were in bankruptcy by 2010. A series of blunders by upper management, highlighted by a lack of strategic vision, led to Blockbuster’s rapid decline and ultimate failure.
As the business, people put it, to maximize the wealth of shareholders (Peavler, 2016). This could be done by pursuing more of an immediate reason that will realize the shareholders wealth maximization goal. However, this main reason may fail to be realized as most mergers depict negative results.
Over the years, Bollywood has emerged as its own distinct identity in the global Film industry. Bollywood is the global leader in production of movies with a staggering 27,000 featured films and thousands of short films. ( Pillania 1) However, Hollywood is still the leader in revenues generated. Due to the growth of the Indian market and globalization, Bollywood has made its way to the international markets. Globalization is often misrepresented as the growing influence of the western culture in the world and so we tend to state that Hollywood is influencing Bollywood to a great extent. An argument can be made to justify the validity of that statement. However, this paper aims at presenting the influence of Bollywood on Hollywood in terms of music, dance and visual representation. This papers deals with a specific part of globalization, providing evidence that it
Mergers and acquisitions immediately impact organizations with changes in ownership, in ideology, and eventually, in practice. There are multiple reasons, motives, economic forces and institutional factors that can, taken together or in isolation, influence corporate decisions to engage in mergers or acquisitions. The financial risks of merging with or acquiring an organization in another country and how those risks can be mitigated are important issues for corporations to conduct research on. This paper will examine the sensible and dubious reasons for mergers and acquisitions and the benefits and costs of the cash and stock transactions.
Each set of clips progressively show the development “independent cinema” through each film. Originally, independent cinema before Quentin Taratino was a refusal of Hollywood ideals. With the rise of Taratino on the independent cinema Miramax changes how independent cinema evolves as a “genre” and marketing tool. Through each set of clips Reservoir Dogs (1992), Kids (1995), and Shakespeare in Love (1998) with editing and the ambiguity of narrative closure; in order to see the evolution of Miramax brand of “independent cinema”.
‘Horizontal Merger’ is when two companies with similar products join together. ‘Vertical Merger’ is two companies at different stages in the production process. ‘Conglomerate Merger’ is when two different types of companies join together. ‘Market extension merger’ is between two companies who produce the same product but sell in different markets. ‘Product Extension merger’ is between companies with related production but they do not compe...