As we see more and more companies laying off, the difference between companies that are doing good and the companies that are doing bad is becoming starkly clear. The ones that are doing OK would have to choose sides soon. And, in the end, the ones that are doing better tend to buy the ones that are doing bad(not unlike the jungle where the strong animals eat up the weaker ones, no wonder we are living in a corporate jungle!). The most recent talks are about IBM buying Sun. As the recession becomes worse, more and more deals and acquisitions are in the horizon. Do I have to start a deal watch now?
And, another question is, the strong companies are strong now. But, once the weaker companies are bought, would their position still be strong enough to wear out the recession? Or would that make them a weak company too, ready to be another victim?
Further, if this recession leaves us with just one or two players in each field, would it be good for the consumer? Would we have as many choices as we have now? And, worse, what if there was only one company per field? or worst, what if there was only one company that dominated many fields? I can see some companies emerging better in their fields and wielding considerable clout in others. Is it good for us as consumers? Wouldn't it be giving too much power into too few hands? Every time that has happened, it has led to tyranny and revolution in history. Would we see a corporate war in future?
What do you think? Is this deal the first of the recession or is it a one-off? And are these deals good for the economy and the future?
Disclaimer: All these views above are mine and mine only. They are spoken from the point of an ordinary consumer with data available to everyone in the world.