Respond to other
learners
75 words onlyTracy Knecht
Unit 5Week 2
Main Post
Successful AcquisitionsEBay and PayPalThe acquisition is successful due to the fact that Ebay was
able to combine a successful online retail with a very productive electronic
payment service. This service was well known and utilized and allowed eBay to
improve and add it the current customer base. The electronic service provides a
way to speed up the electronic payment service (The value of, 2014).
Google and YouTubeGoogle purchased YouTube for $1.65 billion in 2006. The
purchase was based on the calibration of Googles resources and technology
leadership and YouTube’s well known entertainment source on the internet. The
acquisition has been an outstanding success offering consumers a new aspect of
on line media entertainment (Riley, 2013)
Unsuccessful Acquisitions
K-mart and SearsKmart and Sears merged in 2005 and has experienced failure.
Sears believed by acquiring Kmart and sending a single message of buy now and
pay later it would create success. The company tried to focus on Kmart’s
layaway and customer rewards program. Eight years after the acquisition the
company is experiencing failure. Sears Holdings revenue has fallen more than
10%. The brick and mortar store believed they could create an Amazon like
marketplace for consumers. Kmart remains productive but Sears offer big
products such as refrigerators, washers and dryers. These are products
consumers want to see and review before purchasing. Sears has not made any
effort to improve locations and quality of brick and mortar stores. The online
market is not productive for Sears to sell products (Clifford, 2010).Sprint and NextelThe deal between Sprint and Nextel has become a failure.
Sprint purchase Nextel for $36 billion in 2005. Sprint has decided to shut down
Nextel 2013. The two companies believed they could combine technology to become
a giant in the market. Sooner after the merger Sprint realized that each
network ran on different technology making it impossible to combine the
wireless infrastructure. Sprint did not do its homework when deciding to
purchase Nextel leaving the company with a loss. Sprint lost 455,000 contracted
customers due to the shutdown of NextelReferenceClifford, S. (2010, December 21). A tough sell at sears.
Retrieved May 26, 2014 from
http://www.nytimes.com/2010/12/22/business/22sears.html?pagewanted=all&_r=0Goldman, D. (2012, May 29). Sprint’s nextel network gets its
death date: June 30, 2013. Retrieved May 26, 2014 from
http://money.cnn.com/2012/05/29/technology/sprint-nextel-shutdown/index.htmRiley, J. (2013, August 11). Google and youtube – one of the
best takeovers in history?. Retrieved May 26, 2014 from
http://www.tutor2u.net/blog/index.php/business-studies/comments/google-and-youtube-one-of-the-best-takeovers-in-historyThe value of paypal and ebay together. (2014, January 22).
Retrieved May 26, 2014 from http://blog.ebay.com/the-value-of-paypal-and-ebay-together/