Marriage Proposals
The Baby-Bells are acting up these days. First, Baby-Bell SBC is trying to buy its former parent "Ma-Bell" AT&T for a cool $16 Billion, and now, just like little kids fighting for attention, Baby-Bell Qwest is in talk to buy the big bad MCI for $6.4 Billion. Phheeww~! These days, sub-Billion dollar mergers & acquisition won’t even raise any eyebrows.
Exciting time we live in huh? Let’s re-cap...
Lenovo/IBM-ThinkPad -- $1.25 Billion
P&G/Gillette -- $54 Billion
SBC/AT&T -- $16 Billion
Qwest/MCI -- $6.4 Billion (??)
I guess the Streets really value the old fashion businesses such as Gillette. It is just mind boggling for me trying to comprehend how some razor company can be worth $54 Billion! I am aware of the fact that Gillette has other products such as Oral-B and Duracell, but $54 Billion?!?! Perhaps my Engineering background bias-ed my valuation for technology companies such as IBM, but I guess IBM’s countless Intellectual Properties are not as dollar-worthy as grooming technologies after all.
Exciting time we live in huh? Let’s re-cap...
Lenovo/IBM-ThinkPad -- $1.25 Billion
P&G/Gillette -- $54 Billion
SBC/AT&T -- $16 Billion
Qwest/MCI -- $6.4 Billion (??)
I guess the Streets really value the old fashion businesses such as Gillette. It is just mind boggling for me trying to comprehend how some razor company can be worth $54 Billion! I am aware of the fact that Gillette has other products such as Oral-B and Duracell, but $54 Billion?!?! Perhaps my Engineering background bias-ed my valuation for technology companies such as IBM, but I guess IBM’s countless Intellectual Properties are not as dollar-worthy as grooming technologies after all.
posted by Jiaying @ 10:57:00 AM
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1 comments
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1 Comments:
Well, you are right, P&G is one huge company, and it would be pretty hard for an average Joe to go through a day without using some P&G product. P&G and Gillette has very little overlapping markets, which makes the M&A even more enticing. Laptop/PC probably last 2-3 yrs before being replaced, but I haven't heard of anyone using the same bottle of Shampoo for 2-3 yrs... :-)
By
Jiaying, @ 2/03/2005 8:35 PM
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