A Complex Question About Websites And Businesses Not easy to explain so please read.

[gameratheart 0]

Note to moderators: I have searched as much as I can to find an appropriate forum for this topic, but finding none, have put it here. I do not feel it should be here though, so if you know a better place for it, please move it. Thanks!

 

Ok, I've got a real tough question that I know has not been asked before and may be difficult to answer, because it's not a question that's asked everyday. It's about business.

 

Say that the manager of one company decided to start up his own website. Another company, who already has a website up (or just made one aswell), takes an interest in the website. After a long and tiresome meeting the two managers eventually come to a mutual agreement - that they are going to merge the two companies.

 

If this were to happen, what would happen to their websites? They would now be both owned by the same company, so does that mean one must be got rid of? And if so, whos? And if not, what should be done?

 

Tough one, isn't it? I've had my head stuck on the question for ages, and now i've decided to put it forward to you so that we can find an answer, if there is one.

 

Please read through this question carefully and then make a cautious reply. I hope to hear from you soon.

[BuffaloHelp 24]

Why would it be so tough? Since both websites are probably well established, why not make one redirect to another?In case of HP vs Compaq. HP was the majority merger, therefore purchased Compaq. So when you type compaq.com it redirects to HP's subdomain. The obvious Compaq's web page designed has changed but it leads to HP's subdomain.So the question is which hosting to keep... If the company A has better service, point domain name B to A's hosting or vice versa. It's not that hard. But it is important to keep both domain names at this point. The past visitors and search engine's cache still have both information and there's nothing professional about having a broken link or showing page that is no longer available. Besides, you can still have people from both site visitors and not lose them at all.Be sure to announce the merge as part of your welcome screen. As far as which name to keep well that depends on clauses both companies agreed. If you are keeping company A's name, then website A's address should remain. That should have been handled by closing lawyers already...no?

[gameratheart 0]

So what you're saying is... combine both websites onto just one of them and then just make the now-useless one go to the combined one. I see. This is very simple actually!!!

[wild20 0]

Yes, and make them revert to one site. For instance, in this case, it would be easier to make the bigger company the one that gives the info, but keep both domains up. Another way would be to merge the companies and make a new website such as >hp-compaq.com<. Just an example, that is not a real website. A simple question and answer, so don't fret

[Tyssen 0]

Whichever one was the most popular, ie the most amount of traffic, should be the one to stay.

[Saint_Michael 3]

actually buffaloHELP is right when its concerns businesses and if they have stock its basically whoever has 51% of that stock for the merger of those two companies they either decide to redirect or make a new site.

[kelvinismyname 0]

I think you will have to consider various Factors such as:1) Are the companies Gonna be merged Under a Single Name or Would they still keep their separate Names.( this determines if there is a need for new logos & branding & even a new site) 2) How diffrent are the Services that each company offers?. ( if the services of the two website differ greatly then both of them should remain separate)eg. Site A does Website Programming while site B does Graphics designs only.).3) Would the Companies be able to maintain & update both websites at the same time.( having to maintain 2 sites will take time and money)..................adobe and macromedia recently merged, but because their main products are diffrent they keep separate sites. This makes it more simple for their customers.so basically it comes down to what services the 2 merged companies are offering. if they are similar..(then just redirect to a New Site or the one that gets the most Traffic) if the services /products differ then keep them separate.

[gameratheart 0]

Ok, think of it this way: The two companies have merged, but still wish to keep a sense of individuality- say, through a subsidy.

Edited March 5, 2006 by NDPA (see edit history)

[mik 0]

When two companies merge, there may well be a whole host of issues, including websites, that need to be resolved by ... negotiation!

Then the lawyers usually get involved if serious issues are involved and the companies have deep pockets.

All is usually sweetness and light provided the new company makes lots of profits - but if profits bomb, goodwill goes out the window and the arguments start and it all ends up in court.

 

A good example of ending up in court is that of Enron in the days just before and after that company's bankruptcy.

Before Bankruptcy, Dynergy, an Enron competitor agreed a bailout deal with Enron worth $23 billion. To hear the respective company Chairman/CEO's talk about the deal one could be forgiven for thinking there was a lovematch made in heaven.

Then Dynergy pulled out of the deal claiming Enron was not being honest about its debt (which was true). Enron promptly filed for bankruptcy.

After bankruptcy, Enron sued Dynergy, and after months of court wrangling, Dynergy paid Enron $92 million in settlement. Unfortunately they never got as far as merging their websites, but as it turned out, that was the least of their problems.

[arnz 0]

It depends on a few factors...Are the companies gonna be merged under a new name, or is there going to be a holding company for the 2 companies (or should I say subsidiaries). If the companies are still gonna be separate but under the one banner, how are both companies going to differentiate from each other?.. (At the same time, how are both going to avoid cannibalism.. or in simple terms.. compete against themselves).Is there the budget to maintain both sites should both continue to trade separately..?Like everyone else said, if both companies are going to offer the same stuff, just re-direct one of the sites to the most popular site, the holding company, or the dominant partner.

Edited March 28, 2006 by arnz (see edit history)