MERGERS &

ACQUISITIONS

NOVEMBER 10, 2021

MUHAMMAD JAHANZAIB CH
BAFM-F19-009
 UBER CONFIRMED THE OFFICIAL CLOSE OF THE ACQUISITION OF CAREEM
FOR $3.1 BILLION
According to a press release, "Careem has become a wholly-owned subsidiary of Uber,
preserving its brand"(Dawn January 3, 2020)
The report said that Careem fellow benefactor and CEO Mudassir Sheikha "will continue to run
the Careem business, which will report to a block made up of three delegates from Uber and two
delegates from Careem" and with the settlement of the deal, Uber has acquired Careem’s
mobility, delivery, and payments businesses across the greater Middle East region.
Both companies think that the acquisition will lend them the opportunity to increase the range
and dependability of services offered through their applications, said Uber in its announcement.
Seller’s View:
The seller here is the CAREEM and during the deal did not disclose any financial information
publicly that could show us their financial position and only reason they made public of selling
their business was to expand the variety and reliability of services. The uber retained the CEO of
Careem on its position for the smooth functioning of the matters.
Buyers View:
The buyer here is UBER. This deal was important for Uber because of its ability to be a
competitive global player as ride sharing company had come into question after it sold its
operations in China, Russia, and Southeast Asia to local competitors after sustaining heavy
losses. Companies usually acquire other business entities to eliminate competition and increase
the market share. Once, they have eliminated the competition by purchasing the business they
enjoy benefits in forms of profit and expertise obtained from such competitors. Since, both
companies were the players of ride hailing companies so one acquired another to capture its
market share and eliminate competition.

DISNEY AND PIXAR/MARVEL

Disney really knows what it is doing when it comes to acquiring other profitable companies. The
entertainment giants first acquired Pixar in 2006 for $7.4 billion. Although a stunning cost, the
studio has released hits such as Toy Story and WALL-E, generating billions in proceeds as a
joint studio. (Investopedia and Newsweek)
Three years subsequent to acquiring Pixar, Disney completed the similar process with Marvel
Entertainment. In 2009, The Walt Disney Company bought Marvel Entertainment for US$4
billion. Like with Pixar, the movies that were produced brought in billions at the cinema world.
With each successful hit, these acquisitions look more and more successful.
Whether an acquisition is large or small, there are always complicated problems you need to
navigate. If you’re planning to deal with this situation, then it’s important to know the general
pitfalls to avoid.
Seller’s View:
In August 2008, former company head Ronald Perelman paid $80 million to settle a lawsuit
accusing him of helping divert $553.5 million in notes when he controlled the company and the
company filed for bankruptcy thus leading to financial difficulties which then resulted in marvel
being sold to Sony.
Buyer’s View:
There is one reason for this: BOB IGER. IGER started his tenure as Disney's CEO when Pixar
was acquired. He knew his way around animation, and it was IGER who said that adding Marvel
to Disney's incredible collection of brands would provide vast opportunities for growth and value
addition. Basically, the main reason was to expand and cash their opportunities.