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Seriously? AT&T just spent $85bln and someone believes the prices will be lower?!
Seriously? AT&T just spent $85bln and someone believes the prices will be lower?!
AT&T bought assets with that money. They're receiving income that in theory should be offsetting what they spent. It's not like they bought a car and a nice dinner. The money isn't gone.
With this step they will have better cash-flow earlier.
Merging feels like a form of collusion. I have a service. You have a service. Let's combine them to eliminate competition between us and make both of us richer with higher prices.
Let's say there are two competing companies, I could myself as an investor chose where to put my money, in one or the other or both. When they merge I lose the ability to place my money how I see fit.
As my professor/dean in financial economics said: If you get to vote on a merger, always vote no!
On the digital side, I did noticed that YouTube TV, Sling, and now DirecTV Now are all raising their prices.
Merging feels like a form of collusion. I have a service. You have a service. Let's combine them to eliminate competition between us and make both of us richer with higher prices.
It is also almost always bad for shareholders when companies are merged. Let's say there are two competing companies, I could myself as an investor chose where to put my money, in one or the other or both. When they merge I lose the ability to place my money how I see fit. As my professor/dean in financial economics said: If you get to vote on a merger, always vote no!
Whenever a corporation says a merger will result in lower prices, they're usually lying, because mergers increase prices. https://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?ref...
https://www.cnet.com/news/at-t-ceo-makes-the-case-for-time-w...
Earlier quoted context omitted.
AT&T bought assets with that money. They're receiving income that in theory should be offsetting what they spent. It's not like they bought a car and a nice dinner. The money isn't gone.
The money isn't gone but cash-flow is. With this step they will have better cash-flow earlier.