Quebecor Inc: The Decision To Acquire Videotron Harvard Case Solution & Analysis

ANALYSIS

1. Qualitative Analysis

PROS FROM THE PERSPECTIVE OF ROGERS

Rogers Communications Inc. is in deep consideration to acquire the Video tron. The biggest advantage to Rogers in the acquisition of the Video tron is that the Rogers will directly get the access to the market. The access of the market is otherwise a hard and a will take a huge time. The term access to market means to acquire the market share. Acquisition always provides direct access to the market and one can become the market leader. As the Video tron is the largest cable provider in the in the province of Quebec, so the acquisition of Video tron by the Rogers will grant the access of the whole market of the Quebec because of the success of the Video tron.

One of the uniqueness of Video tron is that it is the only large cable system available in Canada which is founded, owned and run by the Chagnon family. The Chagnon family is the expert in the business world there fore,the acquisition of Video tron would lead to Rogers to grow the overall group. Furthermore, Rogers and Chag non family have a long positive relationship and even they have worked together, which will not only help to work together and grow the group but also help to complete this deal very quickly.

Video tron is highly successful and technologically advanced company. Rogers would also get advantage to become the technologically advance and an innovating company. Rogers and Video tron both have the same operating activities and those activities can be reduced and can be merged into the centralized process to save the huge cost for operation which is not possible for individual companies without the merger.

Through the acquisition of the Video tron, Rogers will not only acquire the Video tron but it will also acquire the Maclean Hunter Limited. Maclean Hunter Publishing, Canada’s largest and best known magazine publisher. They publish a number of magazines over there in Canada. Therefore,Rogers can also get the advantage of this valuable asset as well through marketing its products in the magazines published by the Maclean Hunter Publishing.

Rogers has the intense interest and has just interred in the communication market. The communication sector is the targeted sector in which Rogers wants to get expertise. On the other hand,Video tron has already got the expertise in this sector.

Video tron has also owned the premier internet portals of Quebec. Premier internet portals has just started the first specialized recruiting service in Quebec and named as this would provide the diversification to the Rogers into a different industry. They can also recruit the best people for their own offices without any in sourcing and outsourcing cost.

Overall the acquisition of Video tron by the Rogers will make the group as the largest cable operator in the Canada.

In the perspective of Video tron, the pros will be that it can also expend its business with Rogers as much as Rogers. With the help of the management of the Rogers both of the enterprises can grow quickly in the several sectors and can compete other, as right after the acquisition the major competitor will be Bell Canada.

Another pro to the Video tron is that it can server the board of Rogers and can run the business according to its own way. Also,this is a very attractive option for Chagn on family as they are business minded people. 

CONS FROM THE PERSPECTIVE OF ROGERS

In this acquisition there can be cons as well. First of all, Chagn on family which is a successful business minded family will also be there at the board level. As the Chagn on family would also keep the substantial voting rights and not only voting rights however,it will also serve the board. Therefore,this can create a lot of resistance while taking any decision proposed by the Rogers. Ted Rogers, the Chief Executive Director of the Rogers group, is an aggressive entrepreneur. He has made his decision at his own, therefore now after the acquisition there might be clashes between Ted Rogers and Chignon family and their positive relations can become bad.

Quebecor Inc The Decision To Acquire Videotron Case Solution

There is an expectation of the synergies between the two enterprises after the acquisition. These synergies can be hard to exploit because of the certain reasons. Both of the companies have common interest businesses therefore,to get the synergies they have to sell the overlapping assets from those businesses and this can provide a huge loss if the value those assets is lower than the value of synergies, which they are expecting. This is very important and considerable point for Roger............................

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