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View Full Version : Mergers & Acquisitions - Good or Bad?


ercarta
December 18th, 2004, 12:26 PM
Does all this merging have any long term negative effect on our economy? I always heard that too much of anything is no good, it seems every time you turn around someone is merging these days. Why can't these companies stand alone anymore? :confused:

The next big merger...
http://news.bbc.co.uk/1/hi/business/4098233.stm
Humanoid
December 18th, 2004, 04:11 PM
Does all this merging have any long term negative effect on our economy? I always heard that too much of anything is no good, it seems every time you turn around someone is merging these days. Why can't these companies stand alone anymore? :confused:

The next big merger...
http://news.bbc.co.uk/1/hi/business/4098233.stm

One word: monopolies. This could be really bad for consumers in the long run, while in the beginning such mergers might provide more convenience, better deals, etc. I heard that Nextel was dying anyway so maybe it's better for them...
Also, as a result of the mergers a lot of people are fired which is also not good.
ercarta
December 19th, 2004, 01:37 AM
The thing with Nextel, to my understanding at least is that in spite of having 95% of Fortune's 500 companies as clients the wireless provider is relatively small. What carried them for a while was the walkie talkie patent. I think the patent has expired and it is no longer exclusive to Nextel.

Secondly, Sprint has been having a hard time financially for some time now so they had to start getting creative. The plan they concocted was to lease service out to other wireless providers and place a bid on Nextel to fall in line to be the second largest wireless provider in the US.

I heard AT&T landline has plans to re-launch AT&T Wireless but this time it will be via Sprint towers & service.

No one stands alone anymore & everyone needs help. It's all about power & growth. The days where companies stay small and conservative are long gone. Every company in every market carries ambitions of rising to the #1 spot, if only for a few years. :)


I heard that Nextel was dying anyway so maybe it's better for them...