JPCass
join:2001-01-23
Denver, CO
| So much for "synergies"
This is another interesting example of how many businesses and investors made horrendous blunders during the dot-com bust. It's also a good case study of how mergers and conglomerates often don't function well - though from today's news SBC/ATT, both being companies coming out of the same corporate culture and industry to begin with, stand a better chance.
I remember reading several years ago that despite the hype from the executives who sold the merger deal, AOL/TW was not being successful in getting their various divisions and operations to actually work together productively. I wonder if one of the problems is divisions not working together on things like discount pricing packages, that might appear to cut into the revenues of each but would benefit the corporation as a whole. Whatever the cause, AOL/TW still doesn't seem able to put together any sort of pricing package that is really attractive and competitive. |
