cbrigante2
Cubs 20??
Premium
join:2002-11-22
North Aurora, IL
| reply to TKJunkMail
Re: um
I'm no financial genius, but how does combining two no profit companies into one magically make them any profit? I would agree that higher prices would be coming next. |
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Jeffrey
too dark too early
Premium
join:2002-12-24
Dix Hills,NY
clubs:
 ·Optimum Online
 ·Verizon FIOS
 ·Vonage
·magicjack.com
1 edit | said by cbrigante2  :I'm no financial genius, but how does combining two no profit companies into one magically make them any profit? I would agree that higher prices would be coming next. For one, they wouldn't have to spend millions of advertisement dollars competing against each other. Also, the collective assets of both companies would be joined. I think those two ideas are part of the equation.
--
And so castles made of sand, slip into the sea, eventually.
I'm the Dude. So that's what you call me. You know, that or, uh, His Dudeness, or uh, Duder, or El Duderino if you're not into the whole brevity thing. |
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DotMac4
Shill H8r
Premium
join:2007-10-26
Huntington Beach, CA | reply to cbrigante2
Because you wouldn't have to have 2 of everything. You have all those customers with one of everything. |
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xrobertcmx
Premium
join:2001-06-18
Sterling, VA
clubs:
·Verizon FIOS
·Comcast
| reply to cbrigante2
Strictly speaking it would allow them to only pay license fees once for content, but serve the combined user base. That makes sense.
From what I've been hearing every time the contracts come up the recording industry slams them, and then, and I'm not sure why, but they can't sell advertising for anything worth buying.
Bad business model, but good idea.
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Retaking our country one election at a time. |
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nightstar75
@salvagedirect.com
| reply to cbrigante2
You asked why would joining 2 non profitable compnaies be benificial?
Savings come from:
- As stated by one person, advertisement money to compete against the other.
- Research fees to design new equipment would be combined to one company and could be cut by 25%.
- # of employees will be cut down, especially the big wigs which will walk away with a pretty profit from the increase of the stock price.
- Again, stock price will increase allowing invetors to control only one company instead of two.
- Better quality of radio by combining the best planners the two companies have thus more customers and the possibility of an a-la-crate package (you pick what you want and want only and pay so many cents/dollars per channel per month). This will also give XM/Siris a better understanding of what people want, thus get rid of channels that 75% of the listeners will not listen to. |
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imanogre
join:2005-11-29
Mcdonough, GA
| reply to cbrigante2
Higher prices wouldn't necessarily be coming next. A couple of years ago ValuJet and AirTran combined. Both were suffering greatly. ValuJet had just had the large crash in the Everglades and the subsequent shutdown for 6 months and AirTran had never made a profit. By combining these 2 companies, they were able to combine their synergies (buzz word) and become a very profitable company. Every company has cost that are associated with just running a business. Now these companies can share that cost burden.
HR, IT, Legal, consumer relations, marketing; All these cost can be combined to save the larger company money. There will probably be layoffs though, and that's the unfortunate byproduct of most mergers. |
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