Quote:
Originally Posted by Mad Max
You know this as a fact then?
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There’s no magic money tree.
If company A buys company B for $Xbn, it’s not because they’ve a few bob burning a hole in their pocket. It’s an investment, and that means a return has to come from the customers in the medium/long term. In an oligopoly the pricing trend is upwards, not downwards as in perfect competition. Hence the returns make such acquisitions more viable.
Ask your average Manchester United season ticket holder who funded the Glazer takeover in reality.