Acquisitions

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TechCrunch  6 hrs ago  Comment 
 There are more problems for ambitious Chinese tech firm LeEco. Its acquisition of U.S.-based TV maker Vizio, a surprise deal announced last summer, has run into issues, according to media reports in China. Back in February, LeEco brushed off...
MarketWatch  Mar 29  Comment 
Amazon.com Inc. said Wednesday it is shutting down the company behind Diapers.com that it bought for more than $500 million because it was unprofitable.
The Economic Times  Mar 29  Comment 
The bank's fund-raising plan is also giving rise to market speculation as to how Uday Kotak, the bank's main promoter, would use the funds.
The Times of India  Mar 28  Comment 
According to brokerages, at the top of the list could be potential acquisition of government’s 12.2% stake in Axis Bank, held through the Special Undertaking of the Unit Trust of India.
Clusterstock  Mar 28  Comment 
Darden Restaurants, the owner of popular chains such as Olive Garden and Longhorn Steakhouse, announced on Monday that it is buying Texas-based restaurant chain Cheddar's Scratch Kitchen for $780 million. In a note sent out to clients on...
Motley Fool  Mar 28  Comment 
ON Semiconductor still has runway left, even after share prices have hit new all-time highs.
Forbes  Mar 28  Comment 
I'm setting up my camera gear as the cast of Penny Arcade's Acquisitions Inc. The "C" Team cast begins to arrive. This will be their second show and there is excitement and nervousness in the air.




 
TOP CONTRIBUTORS

Acquisitions are the purchase a controlling stake in another company by purchasing 51 percent or more of its voting shares with cash, stock, or a combination of the two.

Mergers and acquisitions are two closely related terms and are often listed together on a company's balance sheet as mergers and acquisitions (M&A). But there is an important distinction between these terms - in a merger, two companies become one and both original companies cease to exist; in an acquisition, the acquired company is absorbed by the acquiring company, and only the acquired company ceases to exist.

An acquisition, also sometimes called a takeover or buyout, usually involves the takeover of a smaller firm by a larger one. But there are occasions when a smaller firm will obtain the management control of a larger company, and in these cases the smaller acquiring firm will often keep the existing company name and brand in place for the new, combined company. Takeovers or acquisitions can be friendly, where the management of the company to be acquired negotiates a deal with the acquiring company; or, they can be hostile, where the takeover is made despite opposition by the company's management or an offer is made without prior knowledge by the company's board of directors.

Examples

An acquisition can be carried out in one of two ways:

  • The acquiring company buys the shares of the acquired company and obtains ownership control.
  • The acquiring company buys the assets of the acquired company, and the cash that the acquired company receives in return is paid to shareholders through a divided or by liquidating the company. If the acquiring company buys the entire assets of the acquired company, this leaves the acquired company as an empty shell which is eventually liquidated or enters another line of business.
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