You’ll find plenty of Roman ruins in Rome, Italy, but
Large companies merge or buy out another to become bigger companies or corporations. Sometimes mergers are success like ExxonMobil, but other times one company brings the other down. Here are 9 corporate mergers gone terribly wrong.
- K-Mart Buys Out Sears. In 2005, K-Mart purchased Sears for $11 billion. The next year, Sears’ revenue dropped more than 10% after the merger. Sears CEO Eddie Lampert was named the Worst CEO of the Year in 2007.
- AOL and Time Warner. In the year 2000, AOL merges with Time Warner for $160 billion. AOL Time Warner hoped to be “the world’s largest media company.” However, in 2009, Time Warner and AOL went their separate ways after not being able to turn a profit. AOL, then, bought The Huffington Post in 2011.
- Arby’s Merging with Wendy’s. In 2008, Arby’s acquired Wendy’s for $2.34 billion. Three years later in 2011, Wendy’s sold off Arby’s because the fast food chain didn’t show any growth in profit.
- eBay and Skype. In 2005, eBay buys Skype for $2.6 billion, but only four years later the online auction company was unable to integrate Skype into its service, so they sold it off for only $1.9 billion.
- Daimler-Benz and Chrysler. In 1988, Daimler-Benz acquired Chrysler for $36 billion. Chrysler’s approach to lower income cars clashed with Daimler-Benz’s approach to the higher end consumer. The companies severed ties for $650 million in 2007.
- Quaker Oats Company and Snapple Beverage Company. In 1994, Quaker buys Snapple for $1.7 billion. Two years later, Quaker sells off Snapple for $300 million because Snapple wasn’t turning a profit for Quaker.
- Sprint and Nextel Merge. The communication companies merged for $36 billion in 2005. However, Spirit shut down Nextel after they couldn’t incorporate with each other in 2013.
- New York Central and Pennsylvania Railroad. In 1968, the railroad companies merged to avoid bankruptcy. They built Penn Station together in New York City, but they eventually dissolved their partnership and failed for bankruptcy in 1970.
- Mattel and The Learning Company. In 1999, Mattel was looking to get into software, so they acquired the on-the-verge-of-bankruptcy The Learning Company. A year later, Mattel lost $206 million on the purchase and started to bleed $1.5 million a day until they sold off The Learning Company at the end of the year. Mattel also had to cut almost 10% of its employees to cut cost.