View Single Post
Old 10-02-2011, 14:46   #28
Big-Ted
Inactive
 
Join Date: Feb 2011
Posts: 209
Big-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud ofBig-Ted has much to be proud of
Re: sky movies (excess profits)

Quote:
Originally Posted by Ignitionnet View Post
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.

How can VM be a monopoly when Sky and BT are available to almost everyone in the areas they cover ?

You are a monopoly if you are the only one available.
Big-Ted is offline   Reply With Quote