Tell me how to explain to someone the difference of a merger and a Buyout?

Hers how I tried to explain it:

Merger with and other CO mean that they are usually in the same industry and want to profit off the potential synergy of joining the 2 organisation even though 1 has to actually buy the other.

A buyout is just a firm buying an organisation and usually they will not manage it long term. There main objective is to buy an organisation and usually divide it up to more manageable companies and sell them for more then they paid for the whole organisation.

So bottom line a merger is a buyout but usually the buyer intends to continue the business and wants to profit off the possible sayings coming from redundancies while a buyout is a reselling of the organisation in more manageable pieces.

Am I right?

 

Merger - Two companies come to together to capitalize on the same market, ie..SBC and ATT

Buyout - Company gives a bid for each share of stock, usually to buy the entire company

 

but even with the SBC and ATT 1 of the organisation had to buy the outstading shares right?
And i have to explain it to peeps that dont understand any financial jargon such and capitalize market

 

They bought a certain number of shares, I highly doubt SBC had enough money to buy all of ATT, and if im not mistaken, ATT took the wireless back and SBC now holds land lines, while still using the ATT name.

 

i dont see how a merger would be possible if SBC didnt buy all of the shares.

 

our company says its a merger but it'll feel like a buyout when there company moves into our building and take over...

 

From what i got from searching...ATT split into several different companies and then they all got back together under Southwestern Bell Corp (SBC). So basically they were all the same company just different names...Im really confused