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Corporations Mergers

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orporations are constantly trying to maximize their profits by increasing or decreasing the size of their operations. They do this via mergers or acquisitions (M&A's), and/or spinoffs, downsizing and outsourcing.

Within the last 10 years, research a corporate merger between two corporations (e.g. Time Warner/AOL, Sprint/Nextel or Sirius/XM radio) that is publicly traded with public stock holders and then addresses the following in a 1 or 2 page APA style response:

Compare the profitability of the firms (including stocks prices) before and after the merger.
What were the anticipated sources of the improved profitability?
Were they realized? Why or why not?

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Corporations Mergers
Corporations are constantly trying to maximize their profits by increasing or decreasing the size of their operations. They do this via mergers or acquisitions (M&A's), and/or spinoffs, downsizing and outsourcing.

Within the last 10 years, research a corporate merger between two corporations (e.g. Time Warner/AOL, Sprint/Nextel or Sirius/XM radio) that is publicly traded with public stock holders and then addresses the following in a 1 or 2 page APA style response:
Compare the profitability of the firms (including stocks prices) before and after
the merger.
What were the anticipated sources of the improved profitability?
Were they realized? Why or why not?

I have taken the case of Sprint/Nextel.
About Sprint
Sprint Corporation was founded in 1899 by Cleyson Brown under the Brown Telephone Company name in the small town of Abilene, Kansas. Nextel was founded as FleetCall 1987 and changed its name to Nextel Communications in 1993. As per sprint.com, currently Sprint Nextel "offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 53 million customers at the end of 3Q 2011 and ...

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Explain your views on mergers and acquisitions (M&As); examine related issues

Explain your views on mergers and acquisitions (M&As). Examine the related issues and implications both from the perspective of managers and investors. Make sure your responses are well organized and documented, using references from any of the assigned readings on the topic for this class.

Assigned readings:
Shefrin: Shefrin, H. (2007). Behavioral corporate finance (1st ed.). Montier: Montier, J. (2006). Behavioural Finance: Insights into irrational minds and markets.

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