Definition of Terms:
Acquisition: this is buying a product, business or company. An acquisition is a corporate action in which a company buys most, if not all of another firm’s ownership stakes to assume control of it. An acquisition occurs when a buying company obtains more than fifty percent ownership in a target company (Haspeslagh & Jemison, (1991).. The acquiring company then purchases the target company’s stock and other assets as part of the exchange, which allows the acquiring company to make decisions regarding the newly acquired assets without target company shareholders’ approval. Payment of acquisitions is made either in cash, acquiring company’s stock or both.
WPP: it is a multinational advertising and public relations company for the British. Its central management office is in London, England, and the executive office is in Dublin, Ireland. The Chief Executive Officer of WPP is Martin Sorrell (Burshtein, 2016)..
BuzzFeed: Is an American Internet Media Company located in New York City. The form describes itself as a social news and entertainment company with a focus on digital media and digital technology to provide the most shareable breaking news, original reporting, entertainment, and video (Burshtein, 2016)..
IPO: stands for initial public offering. It is the very first sale of stock issued by a company to the public.
VEB: stands for Vnesheconombank. It is a Russian government-owned development bank meant to provide funding for projects aimed at developing the Russian economy (Haspeslagh & Jemison, (1991). It is not involved in retail bank activities.
In March, WPP Chief Executive Martin Sorell was anxious about Amazon. Today, WPP digital ad Firm Possible has acquired Marketplace Ignition, which is a consulting firm that specializes in helping brands make more money from Amazon. Although Amazon’s ad is relatively small now, it has a data level on online consumer shopping habits that is unparalleled (Burshtein, 2016). Previously, there was a prediction by Mr. Sorell, that Amazon could threaten Goggles dominance of the search market for the above reason. Amazon captures consumer’s right at the point of research, purchase and even when they choose not to buy. Therefore, it makes its suggestion engine even better for next time. Currently, Amazon has started stepping up its ad efforts. In February, the e-commerce giant held its first internal conference devoted to its ad platform. Amazon’s global ad revenue will grow from 29% to one point eight billion dollars this year, as predicted by E-Marketer. WPP has made its purchase right as people are paying more attention to amazon’s ability to fill that number three slot. It has also been vocal about the need for a third party player to chip away at the dominance of Google and Facebook.
In February, YouTube’s brand safety began in the United Kingdoms. The controversy is still a sore point among agencies in the region. The appearance of ads next to unsavory content has made YouTube and Google apologize severally (Palmer, 2013). New tools and restrictions have been released by the company and promise to higher many people so as to prevent the occurrence of such incidents. However, the Brits are not yet amused. YouTube has led to a significant drop of some ads, and therefore a high number of brands have yet returned to it. There is still a belief by the sources that Google does not provide enough independent third-party verification. Large local brands like Vodafone and Nestle continue to withhold their expenditure on YouTube. Google’s worldwide revenue grew annually from nineteen percent to twenty-one point four billion dollars. Most of that revenue was generated by the search, which was not affected by the advertiser suspensions. Some agencies will use YouTube’s woes to leverage in their negotiations with the online giant so as to get better terms and more data across the board.
In 2017, Buzzfeed is targeting a thirty-five percent increase revenue yearly to about three hundred and fifty million dollars. Buzzfeed’s business is built on a different kind of advertising. Two hundred million unique users will actively consume and share branded content created in partnership with the in-house team (Kamel Boulos & Wheeler, 2007).. The company has employed a dozen writers to persuade users to buy products. Its revenue has expanded in areas like e-commerce. From its branded products like the cookbook, Buzzfeed has brought in the dough. With this good news, Buzzfeed will now prepare for a potential IPO next year. The investors will be looking for evidence of the eleven-year-old company’s long-term growth potential. Comcast’s NBC Universal doubled its stake in the online media company with an additional two hundred million dollars investment at a reported one point seven billion dollars valuation in November.
Elsewhere, a Russian state-run bank, VEB, financed a deal involving Donald Trump’s onetime partner in a Toronto hotel tower under scurrility of United States investigators (Shleifer & Vishny, 2003).. The sixty-five-story building was built by Alexander Shnaider, a Russian-Canadian developer after he received hundred million dollars from a separate asset sale that involved Russian bank. In 2010, Mr. Shnaider then sold his company’s share in a Ukrainian steelmaker for about eight hundred and fifty million dollars. The buyer was an entity acting for Russian government and VEB initiated the price and provided the money.
Mr. Shnaider put more money into the Trump Toronto project that had financial problems. His lawyer, Symon Zucker said that about fifteen million dollars went into the Trump Toronto project. A day later he wrote that he could not confirm that any funds went into the Toronto project (Burshtein, 2016). Donald Trump, however, said that he had no dealings with Russia to his best of knowledge.
The Trump Organization’s general counsel, Alan Garten, stated that the company was not the owner developer or seller of the project. In 2011 and 2012, the Wall Street Journal reported that Mr. Trump had a minor ownership stake in the project (Palmer, 2013). In May 2015, the Trump Toronto Management Corporation received six hundred and eleven thousand dollars from the project. The forms do not, however, disclose the company’s total income from the deal. Financial problems dogged the Trump International Hotel and Tower in Toronto.
A Canadian judge placed the tower into receivership in November. The court documents show that Trump’s company was owed one point one million Canadian dollars while Schneider’s company was owed one hundred and five million Canadian dollars (Burshtein, 2016). A judge approved the sale of the building for about two hundred and twenty million dollars in the recent past.
To: The Chief Executive Officer, Mr. Donald Trump
From: Adam Tahirou
Subject: Trump’s Toronto Project
Trump’s Toronto Project would be of great benefit to the states if it had no financial problems. If there are ways and means to explain the financial crises, please do that soon. You can make agreements with the Russian Bank, VEB, to settle the debts annually until they are clear. You can also make an acquisition with Mr. Shnaider to pay the debts. This deal could be regarding assets, property or company. The parties involved should come to an agreement soon so that the project becomes a great benefit to all.
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