has potential to increase shareholder value
diversifies the businesscan concentrate too much power into a monopolistic companymay lead to job lossesmight increase the new company s debt loadexample of amalgamationin april 2022 the telecom giant at t and the television entertainment company discovery inc announced they had finalized a deal to combine at t s warnermedia business unit with discovery that month a new entity known as warner bros discovery inc began trading on the nasdaq stock exchange under the symbol wbd 3in accounting amalgamations may also be referred to as consolidations amalgamation vs acquisitionas mentioned in a typical amalgamation two or more companies agree to combine their assets and liabilities and form an entirely new company in an acquisition by contrast one company purchases another usually by buying up enough of its stock and takes on its assets and liabilities with no new company being created while amalgamations tend to involve voluntary agreements between the different parties acquisitions can occur without the assent of the acquired company in what s known as a hostile takeover 