The Acquisition of Kustomer by Facebook

Current Acquisition

Over the last decade, massive transitions have taken place in different industries owing to the emerging implications of information technology development, necessitating acquisitions and mergers. For this paper, the focus is on the acquisition of Kustomer by Facebook. Ideally, Facebook is a social network company whose operation majorly invested in providing social media platform for international interactions. The acquisition of Kustomer aimed at expanding the customer service tools.

In my view, at this point the acquiring firm has already increase its strategic competitiveness because of the additional features embedded within the social network platforms. Coupled with communication apps such as Instagram, Messenger and WhatsApp, the company has become one of the major forces in this era with over 2 billion users worldwide. This situation provides investors and business owners with a platform to interact without travelling and help the institution raise money.

Problems Affecting Success of Acquisition and Solution

Although there are numerous challenges of acquisition, I believe exogenous risk is one of the most critical concerns. This risk is associated with news and may negatively affect the financial systems based on the shock from external factors (Glick, & Ruetschlin, 2019). With the rapid growth in the use of internet services and social media platform, authenticating news is crucial in every decision for the sustainable development. Firms should invest in market analysis and enhance screening of other organizations to validate their viability in the future before acquiring. Likewise, there is a need to promote continued research market trends using the various business models and tools. The success of any merger or acquisition depends on the feasibility and planning strategies utilized by the acquiring firm to conduct their business. Therefore, these institutions should focus on understanding their market system to establish a long term plan for mergers.

Reference

Glick, M., & Ruetschlin, C. (2019). Big tech acquisitions and the potential competition doctrine: The case of Facebook. Institute for New Economic Thinking Working Paper Series, (104). Web.