The Merger of Cdnow and N2K

Paper Summary:

The paper first gives the backgrounds of both companies, outlining the strengths and the ways in which the merger can be potentially profitable. According to the paper, this is a merger of the type that is an attempt to bring together two internet competitors for the purpose of strengthening the position of both in the internet marketplace. The paper looks at how the companies must then deal with the redundancies of combining two similar businesses.

From the Paper:

"Another strength comes from the very different ways in which the two companies have marketed their sites to this point. Although both have a "general" site, the fact that N2K has emphasized niche sites as well as its general site means that the two competitors are unlikely to share customers. Certainly the benefit of the merger would be considerably lessened if the merger did not result in "additional" customers. There is no reason that the niche sites hosted by N2K under the musicblvd.com and other addresses would need to be abandoned; indeed, the combined catalogs of the two companies should make additional niche sites a possibility."

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