Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Sweden is not really a country that comes to find when one talks about finance or currency trading. The Swedish Krona is a relatively small and insignificant player in the global market. Trading in Swedish Krona accounts for less than 2% of the global currency trades. However, the Krona is what many call a counter […]
In previous articles, we looked at the humungous benefits that the BPO phenomenon brings to the economies of the host and the target nations. Mainly, we focused on how cost savings for the companies outsourcing their back office work and increased revenues for the companies doing the outsourced work have been actualized leading to a […]
From Maruti to Mercedes: The Evolution of the Indian Automobile Industry The Indian Automobile Industry has come a long way since the Independence times wherein its growth has broadly mirrored the changing lifestyle aspirations and the economic boom amongst the Indian consumers. Indeed, while the Ambassador car was the symbol of the Indian Automotive Industry […]
Introduction Information systems have revolutionized the way businesses get conducted. It facilitates automation across departments. Information systems are getting actively used by human-resource team. Most of Human-Resource activities are done through online or web-based portals. This web based portal help employee or HR team member access data from anywhere in the world or from remote […]
Introduction The role of information technology and systems is to improve productivity of organization. Information systems are deployed across functional department of organization. The Marketing Function In broader terms, marketing is defined as a process through which organizations are able to deliver products and services as per the need of the customers. Organizations conduct market […]
AT&T is one of the biggest phone companies in the world. In fact, this was the company that first started building telephones. On the other hand, Time Warner is a giant in the media space. It owns major media channels like HBO and CNN. Each of these companies is gigantic in their own right. This means that a merger of these two companies would create a corporate giant. This is why such a merger was being blocked by many people. The American justice department filed an anti-trust lawsuit against this merger. Also, the American President, i.e., Donald Trump himself was opposed to the deal. He was asked about his opinions on this deal when he was a Presidential candidate. He categorically mentioned that if this deal went through, it would end up concentrating a lot of power in the hands of very few people.
Hence it would be safe to say that the public opinion was opposed to this mega-deal. However, AT&T and Time Warner justified this merger stating that it was inevitable that they merge to form a single company if they have to deal with companies like Netflix and Google. As a result, a tightly contested lawsuit was fought between the justice department and these mega-corporations. The final result is that the court has given its go-ahead to this merger. The justice department has vowed to continue its fight. However, for now, they could not stop the $109 billion mergers between these two companies.
In this article, we will have a look at some of the common objections that were raised against this merger.
Also, this merger is being financed by using large amounts of debt. The problem with leveraged buyouts is that the buyers do not seem to have a long time range. This means that they are in for making a quick buck and have a time frame of three to five years. A lot of strategic investments dont start making money in such a short span of time. This makes the investors panic-stricken and their sudden frantic decisions sometimes end up causing irreversible loss to the underlying corporation.
To sum it up, the odds are stacked against the Time Warner-AT&T deal. Odds are that this deal will end up causing severe damage to at least some of the stakeholders.
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