4 ms·
It says something about a deal when the stock price of both companies rises after an announcement like this.
by mathattack 11y ago
It says something about a deal when the stock price of both companies rises after an announcement like this.
- nickysielicki 11y agoI think it says something about a market.
- jessaustin 11y agoMergers are often more about executive nest-feathering than about "synergy" or whatever, aren't they?
- emodendroket 11y agoThey also tend to drive up stock prices.
- mathattack 11y agoUsually the acquired gains most of the boost. There's a net gain if there is an increase in market power. It's rare to get positive synergies, unless you consider layoffs a synergy.
- emodendroket 11y agoDon't most shareholders? Labor is an expense.
- mathattack 11y agoPoor wording on my part - I wasn't putting in a value judgment. By positive synergy I mean on the revenue side. "They have A sales people selling B per year on product set C. We have D sales people selling E per year on product set F. If we allow their salespeople to sell F and ours to sell C, our revenues will grow from A * B and D * E to A * (B + E) and D * (B + E)." That's a long way of saying revenue promises rarely materialize, but cost ones usually do.
- emodendroket 11y agoWell, you're right, but whether or not they do shareholders seem to behave as if they do (in the same way shareholders seem to think offshoring is a sure thing but increasingly people are finding it's not, necessarily).
- blfr 11y agoMost mergers aren't that great for shareholders. http://www.overcomingbias.com/2010/03/hard-facts-mergers.html http://www.overcomingbias.com/2010/03/hard-facts-mergers.htm...
- Steko 11y agoThe stock dropped more than 3% earlier in the week. Today's news signals that Comcast isn't going to be bogged down by years of uncertainty.