Question

A few years ago, in order to gain market share, Blackboard™, a well-known learning management system software company used by many colleges and universities, joined forces with WEB CT™, another learning management system software company. Both companies were in the same industry and originally competed against one another. In business, we would call the joining of these two firms a(n) ________.
a) vertical merger

b) conglomerate merger

c) horizontal merger

d) applied acquisition

Answer 1

Answer: horizontal merger

                             

Explanation: In simple words, horizontal merger refers to a merger in which two companies operating in the same industrious and at the same level merged their business for the ease of operations of both.

In the given case, both the companies were competitors and were in the same industry. Hence the given case depicts horizontal merger.