Quote:
Originally Posted by Tod
I don't think you can pull the "monopoly" card on Virgin when it has massive debts because of the cabling they did. If they were making huge profits you might have a case in the future. Virgins cable IS their business however.
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Oh I see, so being a monopoly is fine so long as you accumulated debt to get there?
The law and every other definition of a monopoly disagrees. Financial state is totally irrelevant to monopoly status. Virgin's debt is more than manageable according to their financial results.
Also of note is that a proportion of Virgin's debt is due to the acquisition of Virgin Mobile, most of the debt from acquisition of cable franchises. That's what the cost was, not the construction of them but overpaying on acquisitions, and most of this was wiped off in debt for equity swaps by ntl and Telewest.
Bad business decisions and being the poster child for the .com boom does not a company immune to monopoly status make.