NEW YORK--MCI-WorldCom and Bank One-Chase Manhattan merged in a blockbuster $112 billion
deal Monday, forming the world's largest telecommunications/banking company and reducing the number of
existing corporations to six. "This is an exciting move for both companies," said Donald Cosgrove, CEO of MCI-WorldCom, whose
subsidiaries include SBC-Ameritech, Bell Atlantic-NYNEX and McDonnell Douglas. "As a result of this
historic merger, we should be in much better position to consolidate vast amounts of wealth and power in the
coming years."
The other five remaining corporations are Daimler-Chrysler, Monsanto-American Home Products,
Shearson-Lehman-Chemical-Citicorp-Travelers Group, Paramount-Viacom-ABC-Disney, and
Lockheed-Northrop-Boeing-Pepsico.
According to Forbes managing editor Russell Belanger, at the current rate of mergers, there will be only one
corporation in the world by 2000.
"The six remaining corporations have shown great interest in merging with each other," Belanger said.
"Clearly, the stage is being set for the long-discussed creation of UniCorp, a $92 trillion corporation that
produces every product on earth, from canned yams to basketballs to poison gas."
Belanger said mergers are desirable because they give corporations "synergy," enabling them to better sell
their products. "Take Paramount-Viacom-ABC-Disney, for example," he said. "Disney makes the movie, Joel Siegel of Paramount-owned ABC-TV gives the
movie a rave review, and Disney subsidiaries Blockbuster and McDonald's promote the video release of the movie in their respective stores with mail-in rebates
and Happy Meal action figures. It's a win-win scenario."
Bill Clinton, chief executive of U.S. Government, a division of MCI-WorldCom, praised Monday's merger as "an excellent move."
A spokesperson for the newly formed Bank One-Chase Manhattan-MCI-WorldCom said the company plans to cut 92,000 jobs this month.
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