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Showing posts with the label Mergers & Acquisitions

The Yahoo Deal!!

The Yahoooo Deal!! The Tech M&A market has been quite a force in the last couple of years....A number of strategic acquisitions, few bad ones, and some raw deals. The cracking news for the last two weeks has been Yahoo's acquisition of Tubmlr. As I read through the news articles, annual reports, and blogs on the web - there's clearly one word that stands to justify the deal "SYNERGY". The term synergy can be ambiguous to many of us. In this blog post, we will discuss about Synergy and potential gains for Yahoo with respect to Tubmlr deal. Synergy: Synergy is the potential value that can be generated from an M&A deal. As one can understand, there should be some value created by the merged/acquired firms. If there is no value creation(i.e. Synergy), there is no point in going through the expensive M&A process. A M&A synergy can be attributed to following important factors: Revenue, Cost effectiveness, Financial. Revenue refers to increasing mark...