Discussion: "Entering a Merger and Organizational Form"
1. From the scenario for Katrina's Candies, examine the major implications for firms entering into a merger. Explain the criteria the U.S. Department of Justice and the Federal Trade Commission would follow when deciding on whether or not to approve a proposed merger.
2. Below is a list of firms and their market share of the mass media industry.
Comcast ... 33%
DIRECTV ...17%
Time Warner ...17%
DISH Network ...13%
Charter Comm ...10%
Cox Comm ... 10%
What is the industry's Herfindahl-Hirschman Index?
Given current DOJ and FTC guidelines, would Comcast and Time Warner be allowed to merge? What about Charter and Cox? Explain why or why not in each case.
See news video on the proposed merger between Honeywell and UTX below.
Read the outcome here: https://fortune.com/2016/02/23/united-technologies-honeywell/