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same deal that brought down yahoo and how many others? | 275 comments | Create New Account

Comments belong to whoever posts them. Please notify us of inappropriate comments.

same deal that brought down yahoo and how many others?

Authored by: Anonymous on Monday, April 30 2012 @ 10:28 PM EDT

Companies are going to be making this deal so long as they are run by people
looking to their short-term interests. A big cash payment now means big bonuses
for the current management. The fact that this will bleed the company further on
down the line won't affect the fact they get their cash now and, in all
probability, will have moved into other companies when it comes time to pay the
piper.

This is why companies with strong CEO's having strong control over their
companies (over 50% of voting shares) tend not to make such deals. They tend to
tie their long-term future in with the companies far more often and so tend to
look at the deals in that perspective.

--EK

[ Reply to This | Parent | # ]

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