Suppose that Verizon and Sprint were to merge. Ignoring potential antitrust problems,this merger would be classified as a:
A) horizontal merger.
B) vertical merger.
C) conglomerate merger.
D) monopolistic merger.
E) None of these.

Question

Quizplus · Accepted Answer

A horizontal merger is when two companies in the same industry merge, such as two telecommunications companies like Verizon and Sprint merging. This would result in a larger combined company with a larger market share in the same industry. A vertical merger would involve two companies in different stages of the supply chain merging, such as a telecommunications company and a manufacturer of telecom equipment. A conglomerate merger would involve two companies in completely different industries merging, such as a telecommunications company and a food manufacturer. A monopolistic merger is not a recognized type of merger.

Suppose That Verizon and Sprint Were to Merge