Monday, January 31, 2005

Mmmmm mergers

As the news breaks that SBC really is going to buy AT&T its a good time to remember that the break up of AT&T into the baby bells was the last significant use of the Sherman anti-trust act. Since then its been a ever growning tide of merger mania. Throughout the 80's and 90's and now into this century corporations have been going at it like crazy. Many of these acquisitions are dismal flops, unless you happen to be an executive that gets a huge bonus or pay-off or an investment banker or lawyer that gets a fat commission check for making it all happen. After the merger its bad news for the employees and customers, and quite often shareholders. Like a cascade of dominoes merger mania either wrecks a path of destruction and waste, or eventually assimilates enough power to collapse internally from its own size.

When all is said and done there should be room for the little guys to sneak through cracks in the pavement and take reguvenate, just like those pesky mammals did after the dinosaurs all went tits up. But what price must we pay for such a chance at renewal and just how long will it take for corporate America to implode all over again? Maybe it's a good time to refresh our memories with tales of robber barons, railroad tycons, and the implosion of the business world of the thirties. If so then you could do worse than read the interview with Thom Hartmann over at BuzzFlash.

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