Navigating geopolitical tensions in business: lessons from the collapse of an international acquisition

This case offers a detailed account of the first-hand experience of one of the authors, who observed the sudden collapse of a promising acquisition deal between a Chinese smart TV company and a US smart earbud company. Filled with potential for mutual benefits, the deal ultimately fell apart after months of exhaustive due diligence. Through this narrative, the case sheds light on how the broader geopolitical landscape can shape strategic decision-making and contemporary international business practices. Highlighting the imperatives of agility, political astuteness, and cultural awareness in today's interconnected and volatile global environment, the case serves as a compelling resource for students in advanced business courses, for business leaders, and for policymakers alike. In doing so, it responds to the call of Belhoste and Dimitrova (2023) to integrate geopolitical awareness into business learning and education. Company names in the case have been anonymised to ensure confidentiality.