Quote:
Originally Posted by Peter_Spaeth
Long term, it wouldn't seem to make sense to acquire a competitor then just run it as a separate division competing with the main division.
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It happens all the time.
Many car manufacturers produce and sell competing brands. Car rental companies own competing brands. Heck, REA just bought Huggins. It makes no sense to buy a company only to shut it down. My gut is there are synergies/efficiencies they can realize operating both companies, reducing expenses and maximizing production and efficiency. It makes a ton of sense to acquire a competitor to run it as a separate division. It makes no sense to pay good money for a small, relatively non-competitor only to kill it/shut it down.
Peter, I respect your legal conclusions much more than your financial opinions!