Question:

What is the difference between a merger and an acquisition?

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The company I work for is going through a "merger" with another company.Our CEO told us is a "merger",but the CEO of the new company referred it as an "acquisition".The new company is going to be the parent company.What does this mean?Are they buying us out?

They are an out-of-state company and they wanted us to move over there,but nobody will. The new CEO offered me a "work at home"job once the transition is over .Then he emailed me about looking for a new office for me and the receptionist. I asked :where is the new office? and he replied to ask the old CEO.Does this make any sense?

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3 ANSWERS


  1. Merger is usually when two companies basically combine into one. For example, Time Warner and AOL.

    Acquisition is when usually a larger companies buy out a smaller company such as the recent news with JP Morgan acquiring Bear Stearns.


  2. Merger is when 2 companies combine, thus combining what they do.  Acquisition is when one company becomes a part of another, like when ECW became apart of WWE(its just an example)

  3. You are being conned it seems to be, and this is typical.

    A Merger is when two companies in the same field, join forces. This usually means, that there will a reduction of staff personal. And the other workers on the line.

    An Acquisition, is when one Company buys out another company.

    The only ones here, that benefit as a rule, are the Executives and the shareholders, who own stock in the companies.

    You have to figure, that the company, that took over yours, will keep there own employees first, and let your group go, at least the ones, that they don't need.

    As they have asked you to move to another State already, it seems likely, they don't need the building you work in now.

    It's more than likely, they just want to kill the competition you gave them.

    If I were you, while you wait, until they 'find' a new office for you, that you check around for a new position or job. Just in case, you have one of those duplicate jobs.

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