The Critical 'I'

Read. React. Repeat.

Tuesday, February 17, 2004

MERGERMANIA
It's been a wild couple of days in corporate America. A quick rundown:

- Disney turned down what it considered to be a lowball acquisition offer from Comcast, and Comcast is saying (for now) that it's not going to up the offer. I noted that the offer of some $60 billion seemed really low, and I was right.

- Disney celebrated its diss-off of Comcast by buying the Muppets, after pursuing them for over ten years.

- Cingular won the bidding war for AT&T Wireless in a move that the investment community hopes finally jumpstarts the long-anticipated wireless industry consolidation. Nice bit of crapspeak from Cingular CEO Stan Sigman:

"Any way you look at it, this combination makes sense for our companies and for our customers," Sigman said.

Complete garbage, of course. This deal sucks for consumers, as does any consolidation move, because it portends higher prices in the long run. That's the whole point of consolidation: Cutting the field down to just two or three players, who can then stop worrying about the pricing pressures that comes from more sustained competition.

This all gets the blood pumping. Now the fallout from all this comes, which will be even more fun to watch. Can't wait.