Discussion
Walt Disney's acquisition of ABC television network is an example of:
(I) Horizontal merger
(II) Vertical merger
(III) Conglomerate merger
(IV) Cross-border merger
Answer: B
Correct answer: II only
Disney produced content and ABC distributed it, so the acquisition joined successive stages of the same supply chain - a vertical merger, and specifically forward integration into distribution. It was not horizontal, since the two did different things, and not conglomerate, since the businesses were closely related. Both companies were American, so it was not cross-border.
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