At one time,AT&T and T-Mobile wanted to merge but were prevented from doing so by the Justice Department.The government maintained that to permit the merger would eliminate choices for the consumers because these companies represented the majority of the cell phone service industry. What is the name given to this kind of merger?
A) Horizontal merger.
B) Vertical merger.
C) Conglomerate merger.
D) Contingent merger.

Question

​At one time,AT&T and T-Mobile wanted to merge but were prevented from doing so by the Justice Department.The government maintained that to permit the merger would eliminate choices for the consumers because these companies represented the majority of the cell phone service industry. What is the name given to this kind of merger?
A) ​Horizontal merger.
B) ​Vertical merger.
C) ​Conglomerate merger.
D) ​Contingent merger.

Quizplus · Accepted Answer

A horizontal merger is a type of merger where two companies in the same industry and at the same stage of production combine to form a larger company. In the case of the proposed merger between AT&T and T-Mobile, both companies were in the cell phone service industry, making it a horizontal merger.

​At One Time,AT&T and T-Mobile Wanted to Merge but Were

At One Time,AT&T and T-Mobile Wanted to Merge but Were