Question

(a) Would a merger between Microsoft and Apple be a horizontal or a vertical or a conglomerate merger? Please explain.

(b) Do you think the U.S. government would permit the merger to go forward or would oppose the merger in court? Please give an explanation.

Answer 1

Ans a) The merger between the Microsoft and Apple will be a vertical merger. company that follows vertical merger acquires a company that operates in the production process of the same industry. Some of the reasons why companies choose to integrate vertically include strengthening their supply chain, reducing production costs etc.

Ans b) us govt would definitely permit the merger because this merger will strengthen the organisations and earnings earned will be more due to which there will be higher growth of us.