Quote:
Originally Posted by hcv123
I think Collectors primary motivation here was defensive. To take away the opportunity from Fanatics to buy SGC which would have almost doubled their market share to 17% and growing. SGC I think was growing fast, with Fanatics $ behind them could have done some damage to PSA's 78%. PSA is already owns 78% of the market, I don't see that additonal 7% as a big deal to them on its own.
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From what little I know, the defensive strategy seems like it could be a big part of the equation.
For some reason, this tie-up keeps bringing to my mind the merger between Alaska Airlines and Virgin America. In large part, that was also defensive to keep the east coast regional competition from getting a big foothold out west.
There's certainly room to argue that this situation is different, and the end result will be different too. But after that merger, while the Virgin America brand continued for a year or two, they were eventually swallowed up into the larger Alaska brand.
Then again, we're all just guessing. And I'll definitely vote for the answer that Nat probably still doesn't entirely know where this train is going.