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Originally Posted by Alvin
IMO - This is due to the (as written in the Rocky provided link pointing to the documented) litigation history.
And to me seems more a direct result of COMCAST takeover of TIMEWARNER grabbing 1/3 of USA Cable and Overall Media control. Translation - dictatorship.
Anyone else remember the breakup of "MA BELL" aka Bell Telephone systems? Seemingly we are allowing the same Pre-Breakup market dominating to occur right now that covers TV/Print & Digital Media/Cable/Internet all in a bundled packaged by a single conglomerate.
Ex: COMCAST-Universal-NBC
Dumping entities that make "the deal" sweeter to the investors and pumping up the "curb appeal" of the merger regardless of the collateral damage. Sux!
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What is happening here is that companies are doing M&A to obtain other businesses that are accretive to their bottom line. This is the only way they can now show increases to EPS. They have done all the share buy-backs and cost cutting they can. They can not grow earnings by increasing business b/c the consumer is strapped by inflation or unemployed. Consolidation of business and adding the acquired business' cash to their balance sheet provides the growth. When consolidation is done they hope the economy will have improved enough to resume organic growth.
Nothing personal. Just business. Some stuff has to go when things suck for this long. Weak wildebeest theory.