Why might one combined Google/Groupon company be more profitable than if they remained separate companies?

Module 5 case assignment | Business & Finance homework help

One combined Google/Groupon company may be more profitable than if they remained separate companies due to increased access to data, resources, and customers. By combining these two businesses, each would have access to the other’s customer base as well as their respective insights into consumer behavior. This could allow for better targeting of ads and offers which could lead to improved sales performance. Additionally, a single company could benefit from reduced operating costs by eliminating redundancies in marketing, development, etc., thus increasing overall profitability. Finally, with a larger budget and greater resources at their disposal, the combined entity would be able to invest in long-term projects such as research & development that are not always feasible for smaller organizations with limited budgets.