If an oil company merged with a company that produced motion pictures, the result would be a vertical merger.

Question

Quizplus · Accepted Answer

A vertical merger is when two companies that operate in different but complementary stages of the same industry come together. In this case, an oil company and a motion picture company operate in entirely different industries and do not complement each other. Therefore, it would not be a vertical merger but rather a conglomerate merger.

If an Oil Company Merged with a Company That Produced