Question

Provide an example of each of the three types of mergers discussed in this chapter. These do not need to be actual historical examples.

            Horizontal merger

            Vertical merger

            Conglomerate merger

Answer 1

a) An example of the horizontal merger is nvidia and raedon merging together to form a giant graphic card making company. these are competitors and merging them will make a horizontal merger.

b) vertical merger, nvidia merging with the smaller firms which are providing them with machinery and inputs, it will make the output cheaper for nvidia and it will be vertical merger.

c) conglomerate merger : these merger are not horizontal or vertical but a mixture of both, Walt Disney and american broadcasting company.