Brand Transformation Case Studies

Part
01
of six
Part
01

Brand Transformation Case Studies: Disney/Pixar

The Disney/Pixar merger is deemed as one of the most successful mergers of media corporations, with an overall positive impact on both brands.

The Deal

  • On May 5, 2006, in a deal worth $7.4 billion, Pixar became a subsidiary of Disney in what is considered as one of the most successful mergers of all times.
  • Prior to the merger, Disney and Pixar already had a deal where Disney was responsible for distributing Pixar’s works, since 1997 in a 10-year, 5-picture deal in which they shared the costs and profits of movies produced by Pixar.
  • After a long negotiation, Disney offered 2.3 of its shares for each Pixar share and agreed to keep the company culture intact.

Employee Dynamics

  • Some people expressed early concerns about the merger playing out like most mergers, saying that Disney would trample Pixar’s spirit or that Pixar animators would not accept the deal and would rebuke their new owner, creating internal warfare.
  • However, Iger brought his experience dealing with mergers to the table and is considered the driving force behind the successful merger. He was willing to accept the culture of Pixar as one of its strengths and accepted that some things would not change.
  • For Jobs to agree with the merger, Iger had to agree to keep Pixar’s culture and employees. Disney agreed to a set of ground rules for safeguarding Pixar’s looser culture, instead of Disney's formal environment. For example, Pixar employees weren’t required to sign employment contracts with Disney, were free to choose the titles on their business cards, could decorate their cubicles and offices as they wished, and could continue their annual paper airplane contest. Employees were also not fired or relocated.
  • Pixar employees also got to keep their benefits and identity; for instance, telephone operators at Pixar are not required to end calls with the iconic “Have a magical day” and employees get to keep the same email address.
  • To ensure that the transition would go smoothly, Disney kept the Pixar’s high-level management and used their help to guide the changes and mix the company’s visions as one. Not only was Steve Jobs a board member at Disney, but Iger put Pixar chief creative officer, John Lasseter, and president Ed Catmull in charge of Walt Disney Animation Studios.
  • The Disney Steering Committee, consisting of Steve Jobs, Lasseter, Iger, Dick Cook (Disney CEO), Tom Staggs (Disney CFO), and Catmull was established, aiming to ensure that an organizational environment and culture was created to encourage growth and the development of creative thinking and problem-solving.
  • The Committee also made sure that Pixar company culture remained the same after the merger, and was responsible for creating a sense of trust, communication, and respect that was vital for the success of the merge. This dynamic helped the company to work as a team, despite some rough patches.

Investor dynamics

  • The price tag of the merger raised some eyebrows at the time, and it was more than most people were expecting, but the merger was originally greeted with enthusiasm by Wall Street, even though some were questioning if the acquisition would dilute Disney’s earnings.
  • There were also some concerns regarding Steve Jobs and a possible conflict of interests between Apple and Disney.
  • When the deal was announced, Merrill Lynch analyst Jessica Reif Cohen maintained a buy rating and $31 price tag on The Walt Disney Co. stating that the Disney-Pixar merger was a perfect combination.
  • January 24, Disney’s shares were up 47 cents, closing at $25.99 while Pixar was down 70 cents at $57.57 with a market capitalization of $6.9 billion. January 25 showed a different story, with Disney shares closing at $25.44 and Pixar’s shares rising at $58.02.
  • By March 2006, Disney stocks were up 20% for the year, outpacing every other media rival, which some analysts attributed to the Jobs and Apple halo effect.
  • The numbers continued to grow for Disney. In 2007, the stock price closed at $35.43, followed by $34.70 in 2008. Net income went from $2,533 millions in 2006 to $24,687 million in 2007 and $4,427 millions in 2008. (S9)

Customer Dynamics

  • Some say that Disney is killing Pixar’s magic; for instance, Pixar is known for showing sweet and quirky shorts at the beginning of its movies, something fans came to love. When Coco was released, the short was a 21-minute Frozen spin-off called Olaf’s Frozen Adventure, created by Disney and not Pixar.
  • Some fans criticized the move, saying it was evidence that corporate Disney was meddling in Pixar’s creative decisions. However, director Adrian Molina explained that they chose Olaf’s Frozen Adventure because it deals with similar themes than Coco and Pixar didn’t have another short ready.
  • Others point out the Pixar sequels as evidence that corporate Disney and pursuing money and merchandising sales killed Pixar’s original intent and focus, arguing that the merger saved Disney Animations while destroying Pixar.
  • Moneywise, since the acquisition, Pixar movies saw a jump of a $20 million from their average box office numbers before Disney. When adding worldwide sales, that number goes up to $100 million from what it used to make before Disney.
  • Overall, both studies continue to attract consumers, with Disney launching successful animations like Wreck-it-Ralph, Frozen, Zootopia, and Moana, while Pixar launched hits like WALL-E, Inside Out, Finding Dory, Toy Story 3 and UP.

Brand

  • Disney and Pixar kept different brands, logo, colors, identities, and different studios after the merger. Each studio makes its own productions. The making of Bolt illustrate that premise; when the film faced challenges, and the Disney team insisted that they would not make the deadline, Lasseter and Catmull refused to use Pixar resources, opting to resolve the issue with creative solutions.
  • That is not to say that there were no changes, with Disney pressuring Pixar to release more movies per year, more sequels and straight to DVD movies, which the studio used to frown upon. By the same token, Pixar turned around Disney’s animation department and revitalized it.

RESEARCH STRATEGY

The Disney-Pixar merger is an unusual case among mergers for the highly preserved culture and identity of the acquired company. From the start of the negotiations, measures were taken not profoundly disturb employees. Therefore, employees’ dynamics didn’t change much after the merger. Our research shows that, for the most part, the main changes can be found in the creative process and what productions are being released. The nature of the product, animation movies, also present a different customer dynamics than consumer goods or services, which is why when detailing such dynamic, we chose to include some critics and concerns but also included the overall reception of the final product, aka, the box office numbers.

Part
02
of six
Part
02

Brand Transformation Case Studies: CareerBuilder/Gannett Company

Due to unavailability of most of the requested information, we have provided an overview of the acquisition along with some relevant findings related to employees, investors and customers during the period of acquisition activities from 2002 to 2017.

Overview of the CareerBuilder/Gannett Company acquisition:

  • In 2002, Gannett Co. Inc. acquired a one-third stake in CareerBuilder LLC.
  • In 2006, Gannett increased its equity stake in CareerBuilder to 42.5%.
  • Gannett acquired an additional 10% in CareerBuilder in 2008, making it a majority stake holder with 50.8% controlling interest in CareerBuilder.
  • In 2015, Tegna assumed ownership of CareerBuilder. Tegna was formed as a result of spin-offs of publishing businesses at Gannett and Tribune.
  • Tegna reduced its stakes in CareerBuilder to 12.5% in 2017.
  • Also in 2017, Tegna announced that it sold its controlling interest in CareerBuilder to an investment group led by Apollo Global Management and will hold minority ownership stakes in CareerBuilder

Employees between 2002 and 2017:

  • In 2008, CareerBuilder laid off more than 300 workers, which was approximately 15% of the company’s staff.

Investors between 2002 and 2017:

  • Gannet becoming a majority stake holder in CareerBuilder in 2008 did not affect other partners in CareerBuilder including the McClatchy Company and Microsoft Corp.
  • According to a report published by Pew Research, Gannet's stock value decreased from 39 in December 2007 to 8 in December 2008. However, the report does not provide any information on whether this was an impact of the CareerBuilder acquisition.

Customer Acquisition between 2002 and 2017:

  • According to the company, combining CareerBuilder’s resources with Gannet’s further advanced their position as the leading recruitment solution in local markets.
  • The company states that Gannett's ability to promote CareerBuilder through its newspapers, television stations and Internet sites gives it a competitive edge over other online recruitment firms.

Internal Transformation:

  • In 2006, Gannett chose two directors on the board of CareerBuilder.
  • In 2008, Gannett got 3 seats on the 6 member CareerBuilder board after becoming a majority stakeholder.

Brand elements (logo, colors, etc.):

  • After comparing the company’s logo from 2002 to 2009 we found that the logo had not changed in any way and maintained its orange and violet colors during the period of acquisitions.


CareerBuilder/Gannett Company acquisition was a “Endorsed Fusion” type of acquisition:

  • According to a study published by Finch Brands, the CareerBuilder/Gannett Company acquisition was an “Endorsed Fusion” type of acquisition wherein the lead company endorses the acquisition in an identity lockup after its acquisition.

Pros of Fusion Acquisitions:

Cons of Fusion Acquisitions:


Research Strategy:

Strategy 1:

The research team commenced our research by directly searching for any information related to the CareerBuilder/Gannett Company acquisition through official company websites, press releases and other publications. The current website for CareerBuilder provides a detailed timeline from 1995 to 2019. However, it provides limited information on merger/acquisition impact on employees, investors, customer dynamics and the timeline of the transformation.
Further, the company’s official press releases stated that Gannett acquired a one-third interest in CareerBuilder in 2002 and Gannett increased its equity stakes in CareerBuilder in 2006. However, none of the official press releases provided any detailed information on the merger/acquisition impact on employee, investors, customer dynamics and the timeline of the transformation.

Strategy 2:

We subsequently searched for any existing case studies and industry reports related to the CareerBuilder/Gannett Company acquisition. The objective was to find any information from leading research firms on the merger/acquisition impact on employee, investors, customer dynamics. We found a study published by Finch Brands that provided information on various mergers and acquisitions including CareerBuilder as an example. The study states the CareerBuilder/Gannett Company merger/acquisition as Endorsed Fusion and further provides its general pros and cons. However, the study does not provide any detailed information on the impact of the acquisition and the timeline of the transformation.

We came across another report published by Pew Research which mentions the decrease in stock value for Gannet, but it does not provide any information on whether this had an impact of the CareerBuilder acquisition and the timeline of the transformation.

Strategy 3:

We then searched through various blog posts and employee engagement websites to find any information related to the merger/acquisition impact on employees. We hoped to find blog or employee stories that would provide information on employee sentiment after the acquisition. We found numerous blogs published by GannetBlog and Inquisitr that provided information on layoff at CareerBuilder in 2008. However, the blogs do not provide any information that would ascertain that the layoffs were a result of acquisition by Gannet.
We further found another blog published by Gigaom which mentioned that Gannet acquired majority stakes in CareerBuilder in 2008 and that this did not impact the company’s existing investors.
We then searched for any information on employee engagement websites such as Glassdoor and Comparably, among others to find any employee reviews that would provide information on employee sentiment at CareerBuilder after the acquisition by Gannet. We found a post published on Comparably which talks about the layoffs in CareerBuilder, but none of the comments mentioned that they occurred as a direct result of the acquisition.

Strategy 4:

We continued our search through various news publications and media articles to find relevant information with the hope that these articles would provide commentary by industry experts on the impact of the acquisition. We came across various news articles published by Chicago Tribune and MarketWatch that only provided information on how Tegna (Gannet) reduced its stake in CareerBuilder in 2017 and Tegna, the broadcast company spun off from newspaper company Gannett, owns 53% of CareerBuilder. Unfortunately, none of the news publications and media articles provided any detailed information on the merger/acquisition impact on employee, investors, customer dynamics and the timeline of the transformation.

Strategy 5:

In order to search for the changes in brand elements, we used the WebArchive tool to check CareerBuilder’s website for the years 2002, 2005 and 2009. The objective was to compare the company’s logo and colors from before the first acquisition in Oct 2002 to later in 2009.
After exhausting the above mentioned strategies, we concluded that limited information is available on the CareerBuilder/Gannett Company merger/acquisition impact on employee, investors, customer dynamics and the timeline of transformation.
In addition, kindly note that since the CareerBuilder/Gannett Company acquisition first occurred in 2002, most of the sources included in the response are dated back to 2002 to provide comprehensive information.

WHAT INFORMATION WAS AVAILABLE

Acquisition details on how Gannet acquired majority stakes in CareerBuilder.

Information on changes in the company’s brand elements and investor dynamics.

WHAT INFORMATION WAS NOT AVAILABLE

Detailed overview of merger/acquisition impact on employee, investors, customer dynamics and timeline of the transformation.

WHY INFORMATION FOUND COULDN'T BE TRIANGULATED

One of the probable reasons for the unavailability of such information could be that companies involved in acquisitions do not disclose such sensitive information in the public domain for privacy reasons.

It could also be possible that certain changes in the company occurred during the time of acquisition due to external macroeconomic factors and were not a direct result of the acquisition.
Part
03
of six
Part
03

Brand Transformation Case Studies: ExxonMobil

Exxon and Mobil's merger caused massive job cuts and changes in employee policies within the company. However, the merger benefited shareholders and investors by increasing savings and dividends over the years. ExxonMobil decided to keep both brands to preserve customer loyalty and avoid huge costs in rebranding. These are outlined below.

EMPLOYEES

  • The merger between Exxon and Mobil resulted in the loss of nearly 16,000 jobs by 2002.
  • This was almost double the 9,000 job cuts originally announced in December 1998.
  • Of these, 6,000 were determined to come from early retirement and 10,000 from layoffs.
  • An estimated 1,000 job cuts also came from the management level.
  • Significantly, around 2,000 jobs were cut before the merger itself.
  • The job cuts resulted in greater financial savings for the company and helped improve its performance.
  • By 2003, ExxonMobil reported its annual savings to be an estimated $3.8 billion — an increase of over $1 billion from the time of the merger.
  • Following the merger, Exxon Mobil also implemented new employee policies which included same-sex domestic partnership benefits.
  • New employees of the merged companies will no longer receive benefits supporting same-sex partnership except in countries where it was legally recognized.
  • However, former Mobil employees who received the benefits continued to enjoy them after the merger.
  • Exxon Mobil also gave 46,000 sculptures of the Greek horse Pegasus as a gift to Mobil employees in celebration of the merger.
  • The goal was to symbolize for Mobil employees the unity of "the historic tradition of the company with its optimistic future" following the merger.

INVESTORS

  • The merger was expected to bring greater cost savings than originally estimated to shareholders of the companies.
  • Following the announcement, individual shares of Exxon and Mobil initially fell by $3.3 to $71.6 and by $2.25 to $83 respectively.
  • However, shares of the newly merged Exxon Mobil rose by $.069 to $83.06 in December 1999.
  • Numerous industry analysts predicted positive results for the companies' shareholders following the merger.
  • Industry analysts also praised the combination and forecast more mergers in other industries in the wake of ExxonMobil's birth.
  • The merger left Exxon shareholders with 70 percent ownership of the new company.
  • Exxon CEO Lee Raymond said that the first year of the merger will not affect profitability and shareholders can expect additions to their earnings in the following years.
  • Historical stock records shows that ExxonMobil's total return has progressively risen since the merger in 1999.
  • The Motley Fool stated that the ExxonMobil stock has been very successful and given its investors lucrative dividends since the merger.
  • ExxonMobil's stock was qualified as a Dividend Aristocrat and proven to give its investors dividend increases even in difficult times.

CUSTOMER DYNAMICS

  • Citizen.org asserted that the mega-merger between Exxon and Mobil (as well as other oil giants) will push oil prices to an artificial high, affecting consumers.
  • This is due to less competitive markets and an unwritten agreement between key players not to challenge each other.
  • However, industry analysts countered that consumer fears of high prices were unfounded.
  • On the contrary, oil and gas companies needed to get big to account for the high capital needed in oil exploration and drilling.
  • Antitrust commissions also oversee mergers and force huge companies to sell stations, refineries and gas terminals to sustain competition.
  • The Federal Trade Commission also stated that mergers benefit consumers by enabling companies to operate more efficiently.
  • The ExxonMobil merger took place within the merger mania period among other oil giant companies.
  • These included the BP-Amoco merger in 1998, BP Amoco-Arco in 2000, Chevron-Texaco in 2001, Conoco-Phillips in 2002, and ConocoPhillips-Burlington in 2005.
  • Due to the similar mergers happening among competitors, consumers may not have had enough reason to switch brands.
  • ExxonMobil also preserved brand loyalty by keeping both brands separate.

BRANDING AND LOGO

Part
04
of six
Part
04

Brand Transformation Case Studies: DHL/Airbone Express

DHL completed its acquisition of Airborne Express in 2003 where it increased opportunity and stability for employees, investors, and customers. However, after 5 years of acquiring the company, DHL discontinued Airborne Express leading to the customers losing the lowest-priced shipping option and resulting to cut 9,500 jobs.

OVERVIEW: AIRBORNE EXPRESS ACQUISITION BY DHL

  • DHL completed its acquisition of Airborne, Inc.'s ground operations for approximately $1.05 billion in 2003.
  • Even though DHL Worldwide Express Inc. acquired Airborne for all its ground operations, Airborne retained its air operations and evolved into a separate company called ABX Air Inc.
  • After completing the acquisition of Airborne, Inc.'s ground operations, ABX Air and DHL were to enter into an ACMI agreement in which ABX Air was to provide air service to DHL. Also, ABX was to provide third-party services.

IMPACT ON EMPLOYEES AFTER ACQUIRING AIRBORNE EXPRESS

  • The acquisition of Airborne Express by DHL Worldwide Express was expected to result in increased opportunity and stability for employees.
  • The acquisition also meant additional resources necessary for things like marketing efforts, global branding, and advertising for employees.
  • No changes were to occur for employees benefits such as health, vacation, pension and 401(k).
  • After 5 years of operation since DHL acquired Airborne Express in 2003, the company announced that it is going to discontinue its air and ground operations which would result in 9,500 job cuts.
  • The 9,500 job cuts by DHL were in addition to 5,400 job reductions announced in early 2008. The company explained that after these job losses, between 3,000 and 4,000 employees were to remain at DHL's U.S. operations.
  • DHL further hinted on its plans to close its U.S. ground hubs and reduce the number of stations from 412 to 103.

IMPACT ON INVESTORS AFTER ACQUIRING AIRBORNE EXPRESS

  • After DHL acquired Airborne Express, Airborne retained its air operations and spun off into a separate company called ABX Air Inc. ABX Air was to be publicly owned by Airborne shareholders, who were to get one ABX Air share for every Airborne share they have.
  • DHL was never able to grab a significant share in the U.S. market even after acquiring Airborne Express.
  • The company folded its domestic U.S. business, writing down $3.9 billion to cover severance and restructuring costs, and pushing its parent company, Deutsche Post, to a $1 billion loss for the year.
  • DHL lost $10 billion in the venture.
  • After 5 years of acquisition, the air and ground operations of DHL were discontinued closing most of the old Airborne Express hubs.

IMPACT ON CUSTOMERS AFTER ACQUIRING AIRBORNE EXPRESS

  • More customers were to benefit from DHL's unrivaled express and logistics services which help international shippers do business more quickly, efficiently, and competitively.
  • Customers were to benefit from a broad range of express delivery and logistics and bring new options to the small to mid-sized U.S. marketplace.
  • After 5 years since DHL acquired Airborne Express, the company discontinued its domestic operations in the United States and this resulted to the customers losing the third viable option for shipping, and the lowest-priced one at that.

HOW LONG IT TOOK FOR THE TRANSFORMATION TO OCCUR WITHIN THE BRAND

  • The combined companies were to do business under the name DHL Worldwide Express and this took place immediately after the agreement was finalized.

OVERVIEW ON HOW THE BRAND ELEMENTS (LOGO, COLORS, ETC.) CHANGED

  • ABX Air unveiled its logo in 2003.

HELPFUL FINDINGS ON HOW THE BRAND ELEMENTS CHANGED

  • Airborne.com was the home domain of Airborne Express and this was sold to Airborne International B.V. of The Hague, in the Netherlands after the acquisition of Airborne Express by DHL.
  • According to screenshots.com, sometimes in 2013, when one visited the domain name Airborne.com, he/she was being forwarded to DHL’s site only.

RESEARCH STRATEGY

After our exhaustive search, we were unable to provide an overview of how the brand elements changed during the merger/acquisition as well as how long it took for those changes to take place. Below are the strategies we employed in our attempts to find the requested information.

We first looked for pre-compiled information on how the brand elements such as logo, colors, etc. changed after DHL acquired Airborne Express. We searched through company websites, annual reports as of 2003, thebalancesmb.com, latimes.com, postandparcel.info, etc. What we found were mostly details of the acquisition and its impact. Also, we checked the sec.gov website to find any information about how the brand elements changed but this was also unsuccessful as we could only get some branding information stating that Airborne Express will be under the DHL Worldwide Express name once the agreement was complete. Through the ABX Air website, we got information that ABX Air unveiled its logo during the year 2003. ABX Air is the air operations of Airborne Express and acts as a separate company. Unfortunately, we found no useful information about how Airborne Express's brand elements changed during the acquisition using this search strategy.

Our next strategy involved searching for any case studies or research studies about the acquisition of Airborne Express by DHL. We were hoping to find any data points that we could use to triangulate how long it took for the brand element changes to take place as well as providing an overview on how the brand elements (logo, colors, etc.) changed. We searched through researchgate.net, freeonlineresearchpapers.com, jstor.org, etc. Unfortunately, we found no information on how the company's brand element changed during DHL's acquisition. From this search, we only manage to get the company overview, impact of the acquisition, and its challenges.

Also, our research team searched Airborne's company website as well as its social media accounts such as Facebook, YouTube, etc. From this, we could identify if there were any changes in the company's brand elements such as logo, colors, etc. But unfortunately, these social accounts did not exist. Another useful information that we found is that the domain Airborne.com was sold to Airborne International B.V. of The Hague, in the Netherlands.

Lastly, we searched for company advertisements hoping to find any information relating to the brand element changes. We first searched through YouTube to find any advertisement that was put across by Airborne Express before its acquisition and after acquisition to find any information about any changes in the brand elements. However, we only managed to get some advertisement that was done before the acquisition. We found none that was done after the acquisition of Airborne Express and thus we were unable to provide any brand element changes.

In conclusion, we have presented this request as a partial client update since there was no preexisting information on how the brand elements changed after the acquisition of Airborne Express by DHL. The possible reason for the lack of data could be that DHL discontinued Airborne Express as of January 2009. Nevertheless, we were able to find the impact of the acquisition on employees, investors, and customer dynamics as well as the branding transformation. We have presented our findings above.
Part
05
of six
Part
05

Brand Transformation Case Studies: AT&T/DIRECTV

AT&T acquiring DirecTV has an overall negative impact on the employee, investors, and customer dynamics. These negative impacts are seen as negative employee engagement, investors selling their shares, downgraded ratings and losing customers.

EMPLOYEE DYNAMICS

  • Employees complained about mandatory trainings that are not related to their jobs.
  • In a Business Insider report, it was said that some DirecTV staffers felt like their innovative culture was put out.
  • After the acquisition, AT&T required DirecTV employees to participate in the same training required of all AT&T employees so that when AT&T union contract workers strike, service would go uninterrupted.

INVESTOR DYNAMICS

  • Due to the large debt that AT&T has after its acquisition of DIrecTV, investors are selling their stocks.
  • AT&T gives a high 6.7% dividend to attract investors, but due to the stock lost, experts even suggest selling the stocks.
  • AT&T's credit rating downgrading below investment grade means a risk for company investors—shareholders and bondholder.
  • Moody’s and S&P Global Ratings currently rate the debt two levels above junk for AT&T.

CUSTOMER DYNAMICS

  • On October 2018, on its third-quarter earnings report, AT&T revealed that DIrecTV has a 346.000 net loss in subscribers, which then dragged AT&T shares lower.
  • Viewers are abandoning the pricey TV packages for cheaper streaming video services such as Netflix and Hulu.
  • The AT&T-DirecTV merger statement said nothing about lower prices or better customer service, which is of high priorities for most consumers, thus giving low scores for these companies in the consumer survey.
  • According to Delara Derakhshani, policy counsel for Consumers Union, they have been sceptical about the AT&T-DirecTV merger from the beginning.

BRAND TRANSFORMATION / CHANGE IN BRAND ELEMENTS

RESEARCH STRATEGY

The AT&T/DIRECTV acquisition happened in 2015, so we need to look for sources beyond two years. It was important for us to get the news/articles that were written just after the acquisition or closer to the acquisition for us to evaluate the impact. We explored websites such as Forbes, CNN and from the company press releases. We also searched in Seeking Alpha regarding the investor dynamics.
Part
06
of six
Part
06

Brand Transformation Case Studies: Truist (BBT/Suntrust)

In February 2019, BB&T and SunTrust Banks announced that they would be merging to create a financial institution that would become the sixth-largest US bank based on assets and deposits. Their announcement that the new bank will be named Truist has been received generally negatively, and while they have announced the name of the new company, branding materials have not yet been released since the merger is still subject to regulatory approval.

BB&T AND SUNTRUST BANKS

IMPACT ON EMPLOYEES
  • At the management and board level, there will be a 50-50 split between both companies. BB&T's CEO Kelly King will serve as chairman and CEO of the new company until September 2021 and continue on the board till 2023, while SunTrust CEO William Rogers will serve first as president and chief operating officer until September 2021, then as CEO, and later, as chairman.
  • Key figures from both deals expressed optimism at the news of the merger, stating that it would provide the combined entity with the size and scale to compete with other big banks.
  • Of the two banks' 3,100 branches, about 740 of them are within two miles of each other. This indicates that at some point there will have to be branch closures and accelerate job loss for the employees there.
  • However, even though branches in places such as Allentown might bear the brunt of expansion, some still believe that there is little overlap of branches at the local level and branch closing does not seem like an immediate priority.
INVESTOR DYNAMICS
  • The announcement of the merger led to an overall positive sentiment from the markets, with SunTrust and BB&T stock prices jumping by almost 12% and 10%, respectively.
  • The merger's impact upon completion is expected to some be met with uncertainty in the banking sector.
  • To allay concerns from the public, the banks also announced that they would commit $60 billion in loans and investments in low- to moderate-income communities over the next 3 years, signifying to both investors and customers that the bank plans to invest, and the merger is not a scheme aimed just at getting bigger.
IMPACT ON CUSTOMERS
  • Customer sentiment about the merger has been mostly positive. Various letters have been written to the Federal Reserve by corporate customers and smaller businesses who have established partnerships with both banks endorsing the merger.
  • However, the new name of the bank has led to some negative backlash in the media.
TRUIST BANK: BRANDING CHANGES
  • Although it has been agreed that the holding company for the merged banks will be named Truist Financial Corporation and the combined bank will be named Truist Bank, the new brand logo, typography, and other branding elements have not yet been released.
  • Despite this, there has already been some reasonable backlash to the selected name of the new brand. The reaction to the new name online has been overwhelmingly negative. Many customers and professional branding concerns voiced their displeasure with it. Many have compared their effort at rebranding with that of Tribune Publishing. They had to revert to the previous name after their rebrand was not favorably received by readers.
Sources
Sources

From Part 02
Quotes
  • "CareerBuilder teams up with Gannett, Tribune and Knight Ridder and acquires HeadHunter.net, creating the most powerful career network on the Web. In 2006, McClatchy acquires ownership of CareerBuilder after purchasing Knight Ridder, further expanding CareerBuilder's local footprint. (2002)"
  • "Following spin-offs of publishing businesses at Gannett and Tribune, CareerBuilder is now owned by TEGNA, Tribune Media and The McClatchy Company. (2015)"
Quotes
  • "CareerBuilder, LLC and Gannett Co., Inc. (NYSE: GCI), today announced that Gannett has acquired a one-third interest in CareerBuilder joining media companies Knight- Ridder, Inc. (NYSE: KRI) and Tribune Company (NYSE: TRB) as owners. "
  • "The companies also announced that more than 90 Gannett newspapers will become CareerBuilder affiliates and that CareerBuilder will power the career channel on USATODAY.com. "
  • "Combining CareerBuilder with the resources of our 94 newspapers, 22 television stations, and related Web sites will further advance our position as the leading recruitment solution in our local markets."
  • "The addition of Gannett strengthens CareerBuilder's position as the most powerful integrated job solution in the U.S.," added Bob Montgomery, CareerBuilder chief executive officer. "
  • "Gannett is a great company, and adds a lot to CareerBuilder's momentum in the marketplace," said John Madigan, Tribune chairman and chief executive officer."
  • "Along with Tribune and Knight Ridder, Gannett's ability to promote CareerBuilder through its newspapers, television stations and Internet sites gives the company a competitive edge that no other online recruitment firm can match."
Quotes
  • "Under the agreement, Gannett and Tribune will increase each of their equity stakes in CareerBuilder and ShopLocal.com to 42.5%, and in Topix.net to 31.9%."
  • "The agreement values CareerBuilder at $1.55 billion, ShopLocal.com at $85 million and Topix.net at $72 million."
  • "To increase their equity stake in CareerBuilder, Gannett and Tribune will each pay McClatchy approximately $142 million."
  • "The board will be composed of two directors chosen by Gannett, two by Tribune, one by McClatchy, and CareerBuilder’s chief executive officer, Matt Ferguson."
  • "We are pleased to expand our ownership position in each of these companies and form an alliance with McClatchy," said Craig A. Dubow, Gannett chairman, president and chief executive officer."
Quotes
  • "The lead company endorses the acquisition in an identity lockup – such as when CareerBuilder was endorsed as ‘A Gannett Company’ after its acquisition."
Quotes
  • "A published report yesterday put the number of jobs cut at more than 300 -- just two months after CareerBuilder won a $2.9 million city tax break to add jobs at its main office."
  • "They have been laying/firing small numbers since August to avoid a mass layoff. There were several executives and managers laid off. Job losses were not just from sales -- but from all areas of the company. With the Tribune filing for bankruptcy, there will be more.""
Quotes
  • "It appears some of CareerBuilder’s staffers are going to be looking for new jobs. The job hunting Web site has laid off more than 300 workers, the Chicago Tribunehas confirmed."
  • "The cutbacks reached across multiple departments and locations but hit CareerBuilder’s small business unit the hardest, the Tribune reports. CareerBuilder has a staff of about 2,000, suggesting somewhere in the ballpark of 15 percent got the ax."
  • "The changes aren’t necessarily a surprise when you consider the companies behind the site: CareerBuilder is 50 percent owned by Gannett — which has dealt with enough cutbacks within its own ranks to inspire a dedicated Gannett layoffs Web site — and 30 percent owned by Tribune, which filed for bankruptcy earlier this week."
Quotes
  • "Gannett (NYSE: GCI) has acquired an additional 10 percent stake in CareerBuilder from the troubled Tribune for $135 million. That gives Gannett a 50.8 percent controlling interest in the online jobs site. "
  • "The shared ownership doesn’t affect the other partners in CareerBuilder, which includes The McClatchy Company (NYSE: MNI), which continues to own 14.4 percent; and Microsoft (NSDQ: MSFT) Corp. (Nasdaq: MSFT) continues to own 4 percent."
  • "Under the new ownership arrangement, Gannett has three seats on the six-seat CareerBuilder board. "
Quotes
  • "Not often; did one in 2008 (understandable) and one in sept 2017; new owners so so many inefficiencies that required company to trim the fat and get rid of positions no longer needed. When they do happen, the entire execution process is flawed."
Quotes
  • "Tegna, the broadcast company spun off from newspaper company Gannett, owns 53 percent of CareerBuilder and will receive $250 million and reduce its stake to 12.5 percent. "
  • "Tribune Co. (now Tribune Media) bought a stake in CareerBuilder in 2000, while Gannett became a partner in 2002."
From Part 03
Quotes
  • "(p.243) Case Study 6-6 Exxon-Mobil: A Study in Cost Cutting"
  • "(p.243) The world's largest publicly owned oil company would cut almost 16,000 jobs by the end of 2002. This was an increase from the 9000 cuts estimated when the merger was first announced in December 1998."
  • "(p.244) Of the total, 6000 would come from early retirement. Estimated annual savings reached $3.8 billion by 2003, up by more than $1 billion from when the merger originally was announced."
Quotes
  • "Exxon's $81 billion acquisition of Mobil has meant new policies from the Exxon Mobil headquarters in Texas. The company has announced it will no longer extend benefits to new employees' same-sex domestic partners, except in countries where same-sex marriages are legally recognized. "
  • "Champagne and other former Mobil employees can hold on to their current benefits, however."
Quotes
  • "Noto said 6,000 of the 16,000 cuts will come from retirements, and 10,000 from layoffs."
  • "More than half of the cuts will be made in the next year--4,000 in the United States and 6,000 abroad, Noto said, with Exxon employees accounting for 60% of the cuts."
  • "One thousand job cuts will come at the management level, but the company would not specify from where the other cuts would come. "
  • "About 2,000 people had already lost their jobs before the merger was completed, officials said."
  • " The merger of Exxon and Mobil will bring bigger cost savings than expected for shareholders, though thousands more employees will lose their jobs, company executives said Wednesday."
  • "Shares of Irving, Texas-based Exxon Mobil rose 69 cents to close at $83.06 on the New York Stock Exchange."
Quotes
  • "In 1999, oil powerhouses Exxon and Mobil merged to create Exxon Mobil. To help celebrate and memorialize the occasion, the chairman of Mobil sought a gift for his 46,000 employees that marked the completion of the merger with Exxon."
  • "The goal was to create a gift that would resonate with the employees and symbolize the soul and spirit of the company. "
  • "In celebration of the Exxon Mobil merger, employees of Mobil corp were presented with a sculpture of the greek winged horse, Pegasus. From the earliest days of the Mobil brand, Pegasus was the symbol of the company culture – representing freedom and mobility. "
  • "This historic, iconic symbol of Mobil was the perfect model to mark such a pivotal occasion in the company’s history and to unite the historic tradition of the company with its optimistic future. In addition, the custom packaging which housed the sculpture illustrated the company’s milestones since its founding in 1866."
Quotes
  • "So great are the doubts that the companies will win approval or accept the required divestitures that investors sent the stock prices of both companies down on Tuesday. Shares of Exxon dropped $3.375, to $71.625, and Mobil fell $2.25, to $83.75, well below Exxon's offer price of $99.01 a share, based on Monday's closing Exxon stock price."
  • "It would still appear to motorists as the familiar separate operations, with gas stations and oil cans bearing the distinct brand names."
  • "But many industry analysts agreed with Raymond and Lucio Noto, Mobil's chief executive, who would be the combined company's vice chairman, that the corporations and their shareholders would do better united."
  • "Analysts praised the latest combination, saying that other industry mergers would follow. "
  • "Exxon would trade 1.32 shares for each Mobil share, leaving Exxon shareholders owning 70 percent of the resulting company. "
  • "He and other analysts said they considered Mobil's $80 billion price tag to be fairly high, but reasonable considering the benefits. Raymond said the purchase would have no effect on his company's profitability in the first year and would begin adding to earnings per share after that."
Quotes
  • "The stock has been highly successful, giving investors a 100-bagger in less than half a century and offering a lucrative dividend yield during most of that period as well. Let's look at ExxonMobil stock and how it has done in the past to see if it can keep up the pace going forward."
  • "Exxon Mobil Total Return chart 1980-2010"
  • "Part of the way that ExxonMobil has performed so well is that it has been good at boosting its dividends over time. Its current yield of 3.2% is above the market average, but a 33-year track record of annual increases in its dividend payments is even more impressive. "
  • "The stock qualifies as a Dividend Aristocrat, and even during tough times, ExxonMobil has been able to give shareholders dividend increases."
Quotes
  • "We warned in our October 1999 report Black Gold that the Exxon-Mobil and BP Amoco-Arco mergers would lead to less competitive markets, thereby harming consumers. Not since 1984's ‘Year of the Merger’—Royal Dutch’s acquisition of Shell, Chevron’s procurement of Gulf, and Mobil’s purchase of Superior—has America seen a similar frenzy of consolidations in the oil and gas industry."
  • "When corporations get as big as these have, engaging in a price war to compete for new consumers’ business can be seriously debilitating to a company’s revenues and profits."
Quotes
  • "Philip Verleger, a senior adviser to the Brattle Group, an economic consulting firm in Cambridge, Mass., argues that mergers, by cutting exploration and production costs, will ultimately lead to lower prices for consumers. He also argues oil companies have to become huge, undertaking many projects, in order to spread the risk of putting up the vast sums of money that are now required to explore for oil reserves. "
  • "But the commission has a good record of forcing companies that merge to sell gas stations, refineries and terminals to preserve competition. Exxon and Mobil expect such orders."
  • "The threat to consumers of huge companies can be offset by the presence of rivals, big or small. But there is no similar offset in the political sphere. Given the nation's porous campaign finance laws, huge companies exert oversized influence. "
  • "But it goes a long way to explain why megamergers make Americans cringe even if, as Mr. Adelman says, the economic threat is minute."
Quotes
  • "Mergers Many mergers benefit consumers by allowing firms to operate more efficiently."
  • "The challenge for the FTC is to analyze the likely effects of a merger on consumers and competition – a process that can take thousands of hours of investigation and economic analysis. "
Quotes
  • "September 1999: French oil groups TotalFina and Elf end a months-long takeover battle and agree on a merger. "
  • "November 1999: The U.S. government approves Exxon Corp’s $82 billion purchase of Mobil Corp. "
  • "April 2000: One day after unexpectedly delaying an announcement, the FTC approves BP Amoco Plc’s purchase of Atlantic Richfield Co, or Arco, for $27 billion. "
  • "September 2001: The FTC allows Chevron Corp (CVX.N) to complete its $39.5 billion deal to buy Texaco Inc."
  • "August 2002: Shareholders and the FTC approve an $18 billion union between Conoco Inc and Phillips Petroleum Co that creates the third-largest U.S. oil company. "
  • "December 2005: ConocoPhillips pays $33.8 billion for exploration and production company Burlington Resources Inc."
Quotes
  • "It's reason enough for Exxon Mobil Corp., which plans to keep both the Exxon and Mobil brands alive indefinitely to keep customers like Hansard happy. When Exxon Corp. merged with Mobil Corp. in 1999, some marketers believed keeping both brands was a mistake."
  • "After all, the company spent $27.7 million in the United States last year marketing Mobil-brand gasoline alone. It also spent $7.2 million marketing Exxon-brand fuel, even though the companies decided soon after the merger that their fuel formulas were so similar that they would switch to a single blend."
  • ""I think it's smart that they are taking the technology of Speedpass and the branding that Mobil has spent on Speedpass and transferring it," said Michael McDonald, general manager at J. Walter Thompson in Houston, which handles Shell Oil Co.'s advertising and marketing in the United States. It also gives customers a common reference point for both the Exxon and Mobil brands."
  • "By keeping both brands, Exxon Mobil is saving something that can be more important than money for a consumer-products firm. It's preserving customer loyalty."
  • ""If Exxon Mobil brought in a new brand, they might have to change their entire image." And they would definitely have to change the signs at thousands of stations around the country."
  • "Exxon Mobil spokeswoman Jeanne Miller said[,] "When we get down to it, it's the customers. It just made business sense to keep both brands.""
Quotes
  • "These two companies together created the world’s largest oil company and it soon rocketed to the top of the Fortune 500 list."
  • "The logo that this new company settled on was quite simple. They kept the crossed X’s of the Exxon logo, as well as its color scheme, and added Mobil to the side in the same font and color."
  • "Why the Logo Works As the number one company on the prestigious Fortune 500 list, there can be no doubt that the logo of ExxonMobil is effective. "
Quotes
  • "Worldwide, ExxonMobil markets fuels and lubricants under four brands: Esso, Exxon, Mobil and ExxonMobil Chemical."
From Part 04
Quotes
  • "-Aug. 15, 2003--DHL, the world's leading express and logistics company, today announced it has completed its acquisition of Airborne, Inc.'s (NYSE:ABF) ground operations for approximately $1.05 billion in cash, bringing increased competition to the U.S. express delivery market."
Quotes
  • "Seattle-based Airborne long has been mentioned as a likely company for merger or acquisition. Airborne will retain its air operations, which it will spin off into a separate company called ABX Air Inc. at the end of the acquisition process. ABX Air will be publicly owned by Airborne shareholders, who will get one ABX Air share for every Airborne share they have. "
Quotes
  • "The ownership of the ground operations was taken over by DHL but the air operations were spun off as a separate company called ABX Air. Five years later the ground operations of DHL were discontinued closing the majority of the old Airborne Express hubs."
Quotes
  • "The domain name Airborne.com has been sold to a Airborne International B.V.. of The Hague, The Netherlands."
From Part 05
Quotes
  • "DALLAS, TEXAS – July 24, 2015 — AT&T Inc. (NYSE:T) has completed its acquisition of DIRECTV. The newly combined company – the largest pay TV provider in the United States and the world"
Quotes
  • "The satellite TV company will ditch the blue and white "D" logo that it has used since 1990. Instead, DirecTV will adopt the blue and white globe logo used by its new parent company, AT&T, according to a source familiar with DirecTV's plans."
Quotes
  • "As we roll out this new experience later this summer, current DIRECTV NOW customers will also see a new name—AT&T TV NOW—appear on their screen."
Quotes
  • "A Tuesday article in Consumer Reports stated its policy and advocacy arm, Consumers Union, doesn’t believe that bigger companies do better for their customers."
  • "“In fact, the opposite is often true,” the article stated. It said the largest companies have earned low scores for value, service, and customer satisfaction in our recent consumer surveys. Tellingly, the AT&T-DirecTV merger statement said nothing about lower prices or better customer service, high priorities for most consumers."
  • "“We’ve been skeptical about the AT&T-DirecTV merger from the beginning,” said Delara Derakhshani, policy counsel for Consumers Union. “It raises real concerns about the consolidation of pay TV options in markets where AT&T and DirecTV already offer competing services.”"
Quotes
  • "We think investors want AT&T to deleverage their enormous balance sheet and are selling the stock as a result."
Quotes
  • "They say that AT&T leveled engineering projects that targeted innovation, moved call centers overseas, and hampered productivity with phone repair training. Together, these actions contributed to subscriber volume declines and deterioration of DirecTV and DirecTV Now products, these employees say."
  • "Some DirecTV staffers felt like their innovative culture was squelched"
  • "AT&T also required DirecTV employees to participate in the same training required of all AT&T employees. The training served as an insurance policy that, should AT&T union contract workers strike, service would go uninterrupted."
  • "AT&T doesn't report how many call center jobs moved overseas in the DirecTV business. But since 2011, AT&T has cut more than 16,000 US call center jobs in total, moving many of them overseas, according to Communications Workers of America, which represents some AT&T employees."
Quotes
  • "The most attractive aspect of the stock is the 6.7% dividend. If I thought Stephenson's strategy was sound, I might be willing to buy the stock and get paid 6.7% a year while we wait for his plan to come to fruition. But, since I last wrote about AT&T, the stock has lost nearly 17%. "
Quotes
  • "The main risk this debt poses to company investors—shareholders and bondholders alike—is that the company’s credit rating gets downgraded below investment grade. Moody’s and S&P Global Ratings currently rate the debt two levels above junk."
  • "Analyst Jennifer Fritzsche downgraded AT&T’s shares to Market Perform from Outperform on Wednesday, in part because its status as the most-indebted nonfinancial U.S. company could force it to play nice with bondholders at shareholders’ expense."
From Part 06
Quotes
  • "King will serve as chairman and CEO of the new company until September 2021, but will stay on the board through 2023. William Rogers, SunTrust's CEO, will serve as president and chief operating officer until September 2021, then he will step into the CEO role and later the chairman position."
Quotes
  • "Michael Wong, an equity analyst at Morningstar, said that with little to no overlap locally, closing area branches “doesn’t seem like it would be a priority.”"
Quotes
  • "For BB&T and SunTrust’s existing customers, the merger will mean that they will have access to a wider branch and ATM network overall. At the same time, there’s a very strong chance that their local branch will close."
Quotes
  • "SunTrust's stock prices jumped by almost 12% from $58.75 per share at market close last Wednesday to $65.63 per share Thursday morning. BB&T saw its own stock prices increase from $48.53 per share to $51 per share during the same time frame."
Quotes
  • "Additional brand elements, such as the logo, typography and visual identity will be revealed at a later date. The combined holding company will be named Truist Financial Corporation and the combined bank will be named Truist Bank. While the new names will be effective upon completion of the merger, clients will continue to be served post-closing under the BB&T and SunTrust brands for the near future. "