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Pages:
4 pages/β‰ˆ1100 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 18.72
Topic:

Business Acquisitions: Comcast Corp (CMCSA.O) Background

Essay Instructions:

Business Acquisitions
Use the Internet or Strayer library to research two (2) publically traded U.S. companies, and download their financial statements. Assume that you are the CEO of one of the selected companies. You are responsible for gaining control over the other company. You have three (3) choices, either of which you believe that the Board of Directors will support.
Choice 1: Your company acquires 35% of the voting stock of the target company.
Choice 2: Your company acquires 51% of the voting stock of the target company. 
Choice 3: Your company acquires 100% of the voting stock of the target company.
Write a four to five (4-5) page paper in which you:
Provide a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over.
Specify the overall manner in which the acquisition fits into your company' strategic direction. Next, identify at least three (3) possible synergies that could occur as a result of the proposed acquisition.
Select two (2) out of the three (3) choices provided in the above scenario, and analyze the key accounting requirements for each of the two (2) choices that you selected. Next, suggest one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices.
Select the choice that you consider to be the most advantageous to your company. Explain to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company.
Assume two (2) years after the acquisition, your Board of Directors wants to offer the shares back to the public in hopes of making a large profit. Assume that in each of the two (2) years your company and the target company have had exactly the same reported net income as they did in the year of acquisition. Determine the type of value, (e.g., cost of fair value) that you would use to report the subsidiary's net asset in the subsidiary's financial statements, which the company will distribute to the public with the public offering. Provide support for your rationale.    
Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Examine the various methods of accounting for an investment in equity shares of another company.
Analyze the accounting requirements for consolidated financial information on the date of acquisition and subsequent to the date of acquisition.
Use technology and information resources to research issues in advanced accounting.
Write clearly and concisely about advanced accounting using proper writing mechanics.

Essay Sample Content Preview:

Your Name
Course No. BUS2034
Course Name: BUSINESS FINANCE
PROFESSOR
UNIVERSITY
Date of Submission.
BUSINESS ACQUISITIONS
1.0 Comcast Corp (CMCSA.O) Background
Comcast Corporation is a media and technology company that was founded and incorporated in December, 2001 in the United States. It comprises of two primary divisions namely Comcast cable and NBC Universal with the former operating the cable business segment while the later delivers broadcast TV content, Film entertainment and operates the theme park business segment (Comcast, 2017). The company also deals in Arena management related business through Comcast spectator which exclusively owns Philadelphia Flyers as well as the Wells Fargo arena. The company’s cable communications division comprises of Comcast cable which delivers video and broadband internet and voice cable services to home consumers through its XFINITY Brand which offers an array of channels (Comcast, 2017). Besides, the company also offers advertising, home security and automation as a bundled service to home consumers. Moreover, it offers broadband internet and voice services based on voice over internet protocol (VOIP) technology, cable services and backhaul services to businesses. Besides, it serves over 27 million US households through its digital media properties and exclusively licenses its content to third party cable networks, broadcast and on demand video subscription platforms (House, 2016). The TV broadcast segment owns NBC and Telemundo and the nationwide NBC Universal network.
2.0 Netflix’s (NFLX) Background
Netflix is a leading global company that provides internet entertainment to an estimated 109 million customers in close to 190 countries globally (Sadq, 2013). The company was founded by Reed Hastings in 1997 delivering an assortment of just 2000 movie selections on a pay per movie rental model. The company launched unlimited monthly subscription option in 1999 making it the first company to offer such online services. Its first initial public offering (IPO) happened in May, 2002 and Reed Hastings, the founder doubles as the CEO and chairman with a 7% stake. Netflix currently employs over 1900 people at its headquarters in the US and boasts an extensive subscriber base comprising of over 7.4 million customers to whom it delivers over 90,000 programs (Netflix.com, 2018). Netflix’s greatest challenge is the lack of an electronic distribution network as it has to rely on third party network providers such as Comcast, AT & T and Verizon to deliver content to its customers. Since cable companies own high bandwidth pipelines, they can provide DVD rental services more effectively than Netflix. The company operates three segments namely domestic streaming which streams local content, international streaming which delivers content to international subscribers and domestic DVD which offers DVD services via e-mail (Sadq, 2013). Netflix subscribers can watch video on demand, films and TV shows right from their internet connected devices.
How Acquisition of Netflix Fits in Comcast’s Business Strategy
Comcast Corporation already offers video on demand services through its NBC universal subsidiary. The acquisition of Netflix will help the company to...
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