A corporate merger occurs when two companies combine to form a single entity. This process can help businesses achieve greater efficiency, expand their market reach, or enhance their competitive advantage. Mergers can take various forms, including horizontal mergers, where companies in the same industry join forces, and vertical mergers, where companies at different stages of production collaborate. During a merger, the companies involved typically negotiate terms that outline how resources, assets, and management will be integrated. Successful mergers can lead to increased profitability and innovation, while unsuccessful ones may result in financial losses or operational challenges. Companies like Disney and Pixar have successfully merged to create new opportunities in the entertainment industry.