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Portal
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Highly related; purchase of search engine and Internet capabilities by a portal
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Enhanced distribution channel for the buyer’s contents; pick winners at early stage in related sector
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Little; while some software engineers are redundant (+), the firm saves search costs to recruit further engineers by relocating redundant ones (−)
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SmallEnergy
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Highly related; same sector
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Reduce excess capacity in the sector in order to increase market power and stability
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Little; the facility of the target is less advanced than that of the buyer
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BigMedia
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Moderately related; exploit the trend of media-communication convergence
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Enhanced distribution channel for the buyer’s contents
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Little overlap in cost structure
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BigEnergy
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Moderately related; same sector but different location
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Vertical integration increases the market power of the buyer
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Little; economies of scale are difficult because of geographical factors and different position in value chain
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Chip
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Moderately related; use consumer intelligence gained in telecom service to develop non-memory chips; exploit the trend of software-hardware convergence
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Help target with the chaebol’s internal resources; transfer the target’s capability to the buyer’s businesses
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Little overlap between service (buyer) and manufacturing (target) value chain
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Apparel
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Related; the buyer has traded clothing and extended its business with the M&A
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Design capability of the target is important to upgrade clothing business of the buyer
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No cost synergy because the buyer and the seller are in different segments of value chain
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SNS
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Related; early social network service (seller); Internet affiliate (buyer)
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Having both social network service and search engine can increase user base much
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Moderate cost synergy; can save ad expenses, but the businesses of buyer and seller so far have no specific overlap
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Card
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Moderately related; credit card business (seller) has been an important target of many communication firm (buyer); fintech offers similar recent experience
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Customer data of the buyer and the seller can be combined; mobile services can include finance function
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No clear cost synergy between finance and telecommunication; marketing can be more efficient by combining customer data, but the buyer increased marketing expenses after the merger
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BigMobile
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Highly related; major US wireless operator (seller); telecom affiliate (buyer)
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Moderate revenue synergy because of geographic differences although the buyer and the seller are in the same sector
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No cost synergy in the short run because the buyer cannot restructure the seller due to stakeholders
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SmallMedia
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Moderately related; media content (seller) has been an important target of many communication firms (buyer); digital convergence is relevant
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The buyer can sell the contents of the seller through its mobile channels
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No cost synergy because of the differences in culture, value chain, and size.
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