Is Marriott Hoping to Back Out of Starwood Merger? | viewfromthewing.boardingarea.com

Mergers frequently don’t work, failing to generate anticipated synergies. The winner in any merger is usually the one willing to pay the most, and that frequently means overpaying. This is known as the winner’s curse. Assuming that each bidder has the same information and values something the same, for one bidder to win it means they’re paying more than similarly-situated bidders were willing to.