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Answer Posted / ameet
A Conglomerate Merger is a union of two companies that have
no common types of interest and are not in competition with
any of the same competitors, and do not make use of the
same suppliers or vendors.
The two main objectives of Conglomerate Merger are:
More prestige. This merger creates a media giant. Perhaps
managers like the prestige of creating and working for a
big company. Maybe this leads to a higher salary?
Risk Avoidance. Perhaps a fledgling internet company fears
being swallowed up. Certainly in 2000, many dot com firms
were going to the wall. A merger makes the job safer.
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