Culture clash: The risks of mergers

Jay C

First, the Merger..then, the culture clash.
One definition of an optimist: a person who persists in the face of near-certain failure. Any company considering a merger or an acquisition needs a hefty dose of optimism, because at least 60 percent of all mergers fail

When America Online and Time Warner announced that they were joining forces, a round of mega-merger euphoria swept the stock markets with dealers looking forward to a lucrative future dominated by the internet
However, in the days that followed the share prices of the two companies dropped back as analysts asked how well the merger would work.

All too many mergers undertaken with the highest of hopes have failed to deliver. Too often culture conflicts and personality clashes hamper the new company's performance.

When they don't work, the two key management groups do not
blend well together

Culture Clash on Horizon for East-Meets-West Merger

looks like the clashing has come to a point where the proud, the mighty, the profitable culture will be hit by the struggling, cash strapped, debt ridden evil empire

and drag everything down

one can only hope the vote is yes
and please mommy don't whack me anymore​


I live Here
It takes a very talented CEO to successfully pull off the integration of an aquisition. Unfortunately YRC doesn't have a talented CEO. In fact most CEO's are not all they think they are. I can only think of 2 off the top of my head that are capable and successful with aquisitions. Jack Welsh when he was at GE and Larry Ellison at Oracle.
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