Paramount Case Analysis

1. WHY IS PARAMOUNT A TAKEOVER TARGET? overriding is a potential merger target to Viacom and QVC for a some key reasons outlined below: dominant & Viacom: (1) Synergy world: The businesses of some(prenominal) companies are famous and highly complementary to all(prenominal) other. (2) Cost reduction: dominant & Viacom some(prenominal) have economies of home and are doing business in a similar industry. (3) plus of enhanced and complementary distribution capabilities, which will significantly profit revenue. (4) Better positioning: Will allow Viacom to gain a stronger competitive advantage against its peers. The film industry is highly centralised and a takeover can help Viacom-Paramount reduce their boilers suit competition, thus making them more profitable as a whole. Paramount & QVC: (1) Barry Diller: Was an ex-CEO of Paramount, who would make the company more content-driven), he was anticipate to increase Paramounts film production with take down costs. (2) New Businesses could be established under expectation, such as TV network and channels, to increase revenue for the combined hearty . General: (1) Reputation: Before the 1990s, Paramount had delivered series of roaring programmes, such as Cheers, Star Trek, Happy Days and etc.

Those winning experiences were an important part in forming Paramount and its overall reputation. Therefore, Paramount is a strongly attractive takeover candidate for both Viacom and QVC for these reasons. 2. WHICH OF THE TWO FIRMS VIACOM OR QVC WOULD MAKE A BETTER die WITH PARAMOUNT? Upon calculateing the situation at hand, we relish that Viacom would make a better fit with Paramount. Other than the reasons mentioned in Q1, we have to consider that a Paramount-QVC combination potentially implies asset liquidation of Paramount and abandonment of intangible (intellectual) assets, which are the core asset of Paramount. We feel that Paramount-Viacom will be a better combination since both parties are enhancing their advantages instead... If you want to get a full essay, consecrate it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!