Question 1: Based on last week's conversation with Chris, you suspect he will put forth the following options when you speak with him next week. Agree to sell BabySpeak and CompWear at $99 to level the playing field Agree to carve out the state of Georgia for SWI. while CloudFabric keeps the remainder of the southeast region CloudFabric purchases 50% of SWI's assets A CloudFabric + SWI merger
a). What are the likely issues you should be concerned about or consider for each of the 4 options?
b). Is there anything you should do in preparation for the discussion with Chris given that these options are very likely to be proposed?
Question 2: CloudFabric and SWI decided to merge the two companies, with CloudFabric remaining as the surviving entity. Unfortunately, the combined business operations have not produced stellar results. Ann blames the poor performance on the talent pool, largely coming from SWI, and wants to make some immediate changes. Massive layoffs are being planned, which will disproportionately impact former SWI employees. What legal issues are raised by the forthcoming layoffs?