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Merjerz

 
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  • Another Potential Suitor For RIM As Lenovo Ponders An Acquisition [View article]
    Merjerz mavericks were right on the money, they called this deal ages ago. See: http://bit.ly/1103B3n. Be a voter, add your insight, and make great M&A happen!
    Jan 27, 2013. 05:33 AM | Likes Like |Link to Comment
  • Cisco's M&A Strategy: Success Or Failure? [View article]
    UPDATE: CSCO is selling Linksys to Belkin. No financial terms were disclosed (yet), but reportedly for much less than the $500m CSCO spent on it.
    Jan 26, 2013. 01:15 PM | Likes Like |Link to Comment
  • Avis And Zipcar Sharing A Ride... To Where? [View article]
    Interesting interview with Wheelz CEO here: http://tcrn.ch/Vu1TlE
    Jan 24, 2013. 04:16 AM | Likes Like |Link to Comment
  • Dell M&A: Cause Or Cure? [View article]
    Jose - you've written a nice article there. An alternate explanation for Michael Dell's buying up Dell shares is 'hubris' (is that also at play in Bestbuy?). Dell's performance since the founder retook the helm has been dismal. He is holding on fiercely to the company that bears his name, and desperately wants it to regain its luster.

    On reflection, Michael Dell, Silverlake and MSFT are an unlikely group, but each have a different interest in buying Dell. MD thinks it will save his company and fortune; Silverlake thinks they can turn it around and make good money; MSFT will do anything to stop the third biggest Windows PC/laptop maker from doing what IBM did (leaving PCs).

    At any rate, thank you for the thought-provoking comment.
    Jan 23, 2013. 09:00 AM | 1 Like Like |Link to Comment
  • Dell's M&A: $10B In 5 Years, And Nothing To Show For It? [View article]
    Rumors of Dell's expected buy-out broadly support the case made above. The company has failed to deploy its assets effectively. We wish them lots of luck and success either way.
    http://on.wsj.com/ZS5ZnK
    Jan 15, 2013. 04:00 AM | Likes Like |Link to Comment
  • Avis And Zipcar Sharing A Ride... To Where? [View article]
    dbtunr - interesting. You seem quite certain that this is a 'RBM' (Reinventing the Business Model) acquisition. If that's the case, we can expect to see Avis shift business to the Zipcar model.

    Remember, DISH bought Blockbuster for $320M, whereas NFLX is now a $5B company. If Blockbuster had bought NFLX and shut it down, someone else would've have competed with a new model, say Amazon Prime. Very, very few companies are able to look at a new acquiree, say 'we're moving our business into that' and do it. It is doubtful that Blockbuster would have done it, and doubtful whether Avis can do that. Even if they say they want to - which would be rare, since they're bigger, they're the acquirer, why should they morph? - the cultural and structural challenges are immense.
    Either way, we wish they lots of luck making the most of this.

    Thanks for the insightful, thought-provoking comment!
    Jan 14, 2013. 08:21 AM | Likes Like |Link to Comment
  • Dell's M&A: $10B In 5 Years, And Nothing To Show For It? [View article]
    Curious. Dave Johnson, quoted in the article above, has left Dell for Blackstone: http://bit.ly/11fT97F.
    Jan 9, 2013. 10:59 AM | Likes Like |Link to Comment
  • Why Apple Won't Acquire Twitter [View article]
    Cool idea. Post it at http://www.merjerz.com, and you can get that conversation going.
    Jan 8, 2013. 05:06 PM | Likes Like |Link to Comment
  • 1-800-Flowers.com Could Blossom This Winter [View article]
    Flower enthusiasts with an M&A twist have proposed two deals for FLWS:
    (1) to acquire Edible Arrangements. Read all about it here:
    http://bit.ly/UpsGyS
    (2) to acquire flower startup H. Bloom:
    http://bit.ly/ZWIPlL

    Add your opinions there.
    Jan 3, 2013. 07:05 AM | Likes Like |Link to Comment
  • Dell's M&A: $10B In 5 Years, And Nothing To Show For It? [View article]
    Thanks. It would be great to read your take here: http://bit.ly/XaIxpD.
    Dec 31, 2012. 10:44 AM | Likes Like |Link to Comment
  • Hewlett-Packard Shouldn't Be Buying What Frank Quattrone Is Selling [View article]
    Good article, highlights nicely just how problematic the role of iBankers is in the M&A process.
    Could M&A still save HP? How about this: http://bit.ly/V4KHUO. Be a voter and add your insight.
    Dec 18, 2012. 07:08 AM | Likes Like |Link to Comment
  • 3D-Printing: Hype Or Promise? [View article]
    Merjerz community thinks HP could buy a much smaller player, specifically Makerbot. HP's distribution could make this an M&A deal to be proud of (in contrast with Autonomy, Palm, EDS, Compaq...).
    Do you agree? Vote now and add your insight: http://bit.ly/V4KHUO.
    Dec 18, 2012. 07:04 AM | 1 Like Like |Link to Comment
  • Cisco's M&A Strategy: Success Or Failure? [View article]
    This just in: CSCO is trying to sell Linksys, acquired for $500m in 2003, apparently expecting to make back a fraction of the price paid. And that's a networking company! The Cisco M&A fallacy is falling apart...
    http://vrge.co/12vaBDn
    Dec 17, 2012. 05:49 AM | Likes Like |Link to Comment
  • Cisco's M&A Strategy: Success Or Failure? [View article]
    Thanks for clarifying. We seem to present different perspectives on who ostensibly benefits from the buybacks; you're emphasizing the former shareholders who get bought out. The premise of the article is that the buybacks are conducted to benefit ongoing/remaining shareholders, as they now own a bigger piece of the pie. It is their value that is assessed here. Of course you're right that those shareholders who sold ought to be happy with their cash (happier, it seems than shareholders who've seen their stock go nowhere for years).
    Thank you again for the insightful remarks.
    Dec 11, 2012. 09:54 AM | Likes Like |Link to Comment
  • Cisco's M&A Strategy: Success Or Failure? [View article]
    ConservativeOutperformer - thank you for your detailed comment.
    Naturally the author is aware of the tax consequences. To oversimplify a little: Cisco could have given money back as dividends, taxed over the last decade at 15% as qualified dividends, and Cisco's effective tax rate was 20.8% in 2012, so shareholders get $0.67 on the dollar, after corporate and dividends tax. As the article shows, that is much, much better than shareholders got from buybacks and M&A over that period.
    Of course, Warren Buffet put it best: "...repurchases are all the rage, but are all too often made for an unstated and, in our view,
    ignoble reason: to pump or support the stock price. The shareholder who chooses to sell today, of course, is benefitted (sic)
    by any buyer, whatever his origin or motives. But the continuing shareholder is penalized by repurchases above intrinsic
    value. Buying dollar bills for $1.10 is not good business for those who stick around." (Letter to BRK shareholders, 1999, available here: http://bit.ly/12hPPHo). Cisco has been buying dollar bills for $1.10 for a very long time. Same goes for its M&A activity.
    In that sense it is much, much better to receive double-taxed cash, than to receive some spurious benefit (not spurious for executives, as it pumps up stock price of course).
    You wrote: " I can point to hundreds of companies that would have had far better results over time if they purchased their own equity as opposed to issuing dividends" - presumably you mean results to shareholders. That sounds like an interesting idea for a SA article! Good luck!
    Dec 10, 2012. 05:49 PM | Likes Like |Link to Comment
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