Merger or Acquisition Case Study (Report) Essay

Merger or Acquisition Case Study (Report) - Essay Example On the other hand, if the organization feels it is not performing up to the expected levels, and needs some pep up from external forces, then also they can merge with or acquire company, which is also â€Å"sailing in the same boat† and thus facing the same issues. Thus, M&A can be both a successful strategy and at the same time survival strategy, aiding the organizations in the short as well as in the long run. Immediately it can fulfill the short term targets, and in the long run, probably after five years, it can satisfy each entities long term goals. So, this paper focusing on the merger of AT&T and BellSouth will first discuss the stated aims of that deal and the extent to which these aims have been fulfilled or being fulfilled. AT&T Inc is USA’s largest fixed telephony as well as mobile telephony provider. AT&T has reached its present status, after going through a series of break-ups and mergers. The original AT&T was divided in 1983 as a result of the United Stat es vs. AT&T antitrust suit, and Southwestern Bell Corporation (SBC) came into existence as the newer version of AT&T. Then in 1995, SBC changed its name to SBC Communications Inc. Then, finally in 2005, SBC Communications Inc. became AT&T Inc. ... One of the main aims of this acquisition by AT&T is to create a ‘super-sized’ AT&T, with largest customer base. In case of mergers and acquisitions, in particular acquisitions, the aim of the acquiring company is to further expand its size, operations, reach, etc, by absorbing all the resources of the acquired company. Likewise, in the case of AT&T, it is already a major corporation, while BellSouth was a middle player. Thus, AT&T wanted to further accentuate its size, reach and importantly customer numbers, and this acquisition of BellSouth provided the needed leverage and the numbers. The other associated aim of the acquisition is to control more than half of the telephone as well as internet broadband lines in USA. This way, it also wanted or aimed to beat their competitors. Competition is part of every business, and only if the concerned organization comes up with effective and sometimes â€Å"out of the box† strategy, it can beat off the competition. Thus, th is way AT&T can beat of its competitors like Verizon, Comcast, etc. With Verizon close on its heels, AT&T wanted to accumulate a customer base, which will be ahead of Verizon and other competitors. So, its aim to garner half of the total telephone and internet lines also pushed it to acquire BellSouth. Apart from these AT&T centric aims, the acquisition was also carried out with another aim of propping up Cingular Wireless, the mobile telephony wing. Even before the acquisition, both AT&T and BellSouth only managed Cingular’s operations, but without an single administrative setup. So, both AT&T and BellSouth through the acquisition process aimed to create a more efficient Cingular Wireless. Firstly, the merger