Merger Rumors

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Company mergers and acquisitions can cause a great deal of stress and often produce rumors and half-truths from various news sources. News at to when, how, if and should companies merge or acquire is frequently debated and greatly anticipated. Merger rumors are generally hope or fear type rumors depending on the reaction they instill in customers, stockholders and employees.

The Good, the Bad and the Ugly

Rumors that two companies are merging may evoke one of two reactions: customers and clients are very pleased by the possibility of a merger or they are extremely upset. Positive reactions are helpful to a company’s customer base and valuation, however, negative reactions can be detrimental to both. A good example of a strong negative reaction to a merger rumor is the recent chaos caused by the rumor that AT&T is merging with DirecTV. DirecTV customers are outraged by the possible merger, and are even threatening to abandon the company if the rumor turns out to be true. This merger rumor is a fear type rumor. A rumor like this can have a very negative affect on a company’s brand and bottom line.

Tracking a Rumor

At NarrativeTrack, we are able to alert our client’s before rumors like these catch fire

Early Warning tracker for British Petroleum.

Early Warning tracker for British Petroleum.

and spread. This allows clients to make rational decisions and deploy resources with precision and certainty.

Sean Roth is the Chief Technology Officer and head of engineering at NarrativeTrack.

“Our Dashboard provides a variety of ways to display the potential effect of a rumor,

The NarrativeTrack dashboard allows our clients to assess potentially harmful rumors early, before a negative rumor grows and jumps to mainstream media. We also help users identify positive rumors that help and reinforce client’s brands.

As we are only two years from the 2016 Presidential elections, we are gearing up for the start of some serious rumors! Return next week for more on election rumors.

 

 

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