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Answered 5 days After Apr 21, 2021

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Harshit answered on Apr 26 2021
159 Votes
When a company intense to buy another company by acquiring the equity share capital of that company it is called acquisition. Post-acquisition the acquiring company operates the business of the acquired company. As given in the case the Cable Company wishes to acquire Viacom Inc with the motto to diverge itself in the content and programming segment of the market as well. Certain parameters which the acquiring company has to keep in mind so that it will be able to negotiate with the acquired company in a better way. Therefore the cable company has to make a bid to the equity shareholders of Viacom 18 to sell their equity shares to the Cable Company thereby making Cable Company the owner of Viacom Inc.
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