Quote:
Originally Posted by Snowman
That's a strange response. Why would someone need any knowledge at all regarding the finances or inner operations of either company to be able to make such a prediction?
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If we are making predictions without seeing financials, then M&A common sense says they keep the top talent, any IP that makes sense, kill the brand, devalue the existing inventory, and encourage millions of crossovers, or whatever the addressable base is.
If they shutter SGC and win their existing market share (80%) of current SGC volume, that is an additional 1M+ subs per year. Why run an extra location, and additional staff, to slab these at lower costs when you can bring them into the mother ship at better spreads and reduced expense?
I just don't see any valid business reason to keep a like for like lower cost competitor, with sub 10% market share, alive.