IPcentral Weblog
  The DACA Blog

Thursday, November 12, 2009

Perpetual Techno-Hysteria about Mergers
(previous | next)

Mercury News Columnist Chris O'Brien warns Beware the hype around mergers! O'Brien catalogs the many failed that ultimately ended in divestitures in the tech sector in recent years citing data provided by PricewaterhouseCoopers' Bryan McLaughlin, who estimated tha:

in the third quarter, which ended in September, about 40 percent of the acquisition deals involved some kind of divestiture, up from 25 percent for the same period one year ago. That is, companies weren't buying smaller, stand-alone outfits; they were buying essentially the castoffs of other companies.

And a recent survey by Pricewaterhouse found that 69 percent of the 215 companies polled expected divestiture activity to either stay the same or increase over the next year.

Many of these divestitures are the fruit of ill-considered acquisitions made over the past few years. This failure rate should come as a surprise to no one in the board room or executive cubicle. A few years ago, McKinsey & Co. published a study indicating that 70 percent of mergers failed to generate the expected returns. Hope, however, seems to spring eternal in boardrooms as companies keep making deals.

Let's try to keep these failure rates in mind as we see increased antitrust fervor about blocking or otherwise restricting or simply bogging down mergers. The truth is that most mergers don't work out in the end. But that's an argument against aggressive antitrust enforcement scratch that intervention, rather than for it, because some mergers do create great value for consumers through greater efficiencies and government bureaucrats are unlikely to be able to guess which are which. If they could, they'd be making a fortune in the private sector advising companies how to avoid boneheaded deals! This problem is particularly acute in the tech sector, where today's leaders tend to become tomorrow's laggards because of the inevitability of disruptive innovation, which big companies manage poorly.

posted by Berin Szoka @ 5:54 PM | Antitrust & Competition Policy

Share |

Link to this Entry | Printer-Friendly | Email a Comment | Post a Comment(3)


-David McCullough,” which appears to be about a big whale. "Im running instead of .Two women who work at the Pentagon and are part of the 650, The price for working, As University of California-Berkeley has documented,Better hurry! it wasn’t too hard to hustle to get there. only two over the past seven years have turned the trick after their 26th birthday: Jaromir Jagr at age 33 in 2005-06 and Jarome Iginla in 2007-08 at age 30. most are not 50-goal scorers.

Posted by: http://www.refugelafemma.com/images/sacsmain-fr.php at November 27, 2013 11:28 PM

Oleh : Aliesya KasellaEnggang dan si pipit. Daripada tajuk tersebut sudah tesergam indah di fikiran pembaca cerita cinta bahawa cerita ini berkisar tentang cinta antara dua darjat.namun jalan ceritanya tak seindah cerita cinta “semerah cinta stelletto”...

Posted by: Cheap Nike Air Max at June 20, 2014 2:31 PM

“Arghh! Kau siapa nak halang aku? Suka hati aku lah!” Adeen menepis tangan Dhyia di lengan bajunya. Bagi Rashdeen, tiada siapa yang boleh mengawal tingkah lakunya. Termasuklah ibu bapanya sendiri.

Posted by: Nike Air Max at June 20, 2014 2:31 PM

Post a Comment:

Blog Main
RSS Feed  
Recent Posts
  EFF-PFF Amicus Brief in Schwarzenegger v. EMA Supreme Court Videogame Violence Case
New OECD Study Finds That Improved IPR Protections Benefit Developing Countries
Hubris, Cowardice, File-sharing, and TechDirt
iPhones, DRM, and Doom-Mongers
"Rogue Archivist" Carl Malamud On How to Fix Gov2.0
Coping with Information Overload: Thoughts on Hamlet's BlackBerry by William Powers
How Many Times Has Michael "Dr. Doom" Copps Forecast an Internet Apocalypse?
Google / Verizon Proposal May Be Important Compromise, But Regulatory Trajectory Concerns Many
Two Schools of Internet Pessimism
GAO: Wireless Prices Plummeting; Public Knowledge: We Must Regulate!
Archives by Month
  September 2010
August 2010
July 2010
June 2010
  - (see all)
Archives by Topic
  - A La Carte
- Add category
- Advertising & Marketing
- Antitrust & Competition Policy
- Appleplectics
- Books & Book Reviews
- Broadband
- Cable
- Campaign Finance Law
- Capitalism
- Capitol Hill
- China
- Commons
- Communications
- Copyright
- Cutting the Video Cord
- Cyber-Security
- Digital Americas
- Digital Europe
- Digital Europe 2006
- Digital TV
- E-commerce
- e-Government & Transparency
- Economics
- Education
- Electricity
- Energy
- Events
- Exaflood
- Free Speech
- Gambling
- General
- Generic Rant
- Global Innovation
- Googlephobia
- Googlephobia
- Human Capital
- Innovation
- Intermediary Deputization & Section 230
- Internet
- Internet Governance
- Internet TV
- Interoperability
- IP
- Local Franchising
- Mass Media
- Media Regulation
- Monetary Policy
- Municipal Ownership
- Net Neutrality
- Neutrality
- Non-PFF Podcasts
- Ongoing Series
- Online Safety & Parental Controls
- Open Source
- PFF Podcasts
- Philosophy / Cyber-Libertarianism
- Privacy
- Privacy Solutions
- Regulation
- Search
- Security
- Software
- Space
- Spectrum
- Sports
- State Policy
- Supreme Court
- Taxes
- The FCC
- The FTC
- The News Frontier
- Think Tanks
- Trade
- Trademark
- Universal Service
- Video Games & Virtual Worlds
- VoIP
- What We're Reading
- Wireless
- Wireline
Archives by Author
PFF Blogosphere Archives
We welcome comments by email - look for a link to the author's email address in the byline of each post. Please let us know if we may publish your remarks.

The Progress & Freedom Foundation