Proposal Aims At Business Merger Of 2 California Museums
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Friday, March 15, 2013.
Two heads are better than one. This is a popular saying which means that pooling together the resources of more than one party is more effective than the resources of only one party. Apparently, the same may be true for museums, according to a recently proposed business merger to combine two major California museums of art. The proposal came about as a result of one museum's existence being in jeopardy as a result of financial hardship.
The museum which was in jeopardy was given the proposal by the other museum in mid-February. The proposing museum's letter promised to raise $100 million to help the other museum that was in danger of being shut down. This would not be the first time this museum has needed help from outside sources. Five years ago a billionaire financier saved the museum with $30 million.
The museum that proposed the merger, which was designed to save the museum in jeopardy, stated that it wishes to help preserve an important venue which provides essential programming for the art community worldwide. Other details regarding how the proposal would restructure the management of the two museums have yet to be released. However, officials from the museum submitting the proposal claimed that the merger is aimed at benefiting both museums.
A large business merger such as this one between the two museums in California will require a legal agreement between the two parties. The details of the agreement will include how the merged company will be managed. This will require significant amounts of legal paperwork and contracts which must be drafted carefully in order to protect the rights of both parties.
Source: Fresno Bee, "Merger of 2 of LA's largest museums proposed," John Rogers, March 7, 2013