Are mergers good for American business or just Wall Street?


"Mergers are good for wall street not American business. In most cases, mergers benefits corporation more than consumers."
-- Muin A.

"Mergers are not good for the average American. Too many mergers bring on monopolies in cities, states and the country as a whole. I believe that mergers should be more restricted and should only happen when the merger benefits the customers more that the corporation."
-- D.B.

"Just Wall Street. All mergers have a cost that consumers must pay! Besides, if it didn’t benefit the owners -- why merge?"
-- Roy, Tennessee

"They're good for business and Wall Street. In the case of the airlines and oil companies they don't seem to be good for the consumer though. With Sirius and XM Satellite Radio a merger would be best for consumers. If they don't merge only one will survive and the survivor will have an unconstrained monopoly. If they were to be allowed to merge there may be some regulatory constraints placed upon the combined company in exchange for permission to merge that'll be helpful for the consumer."
-- Ray M., Florida

"American business and Wall Street is essentially the same animal. The real question is: Are mergers good for American citizens, some of whom are profiting from rising portfolios to help offset future rising prices due to lack of competition? Woe to all others."
-- Rob S., Maryland

"I think the cost, and comfort of flying for the average traveler these days tells you the answer to that. Mergers quite often kill competition and put the corporation ,not the consumer, in the drivers seat."
-- Richard B., Florida

More comments...

"As long as it does something good for the end user, mergers are good. The only bad thing I see coming out of a merger is the competition base gets dissolved into a larger company - which reduces competitive nature of business. I just pray we aren't following a pattern of the 1921 -1929 boom, and ultimately the 1929 burst. Remember your history - there was a LOT of M&A activity in that early going too!!"
-- Tom J., Kansas

"If a healthy company is loaded with debt in order to pay off the buyout group this can be good for either business or the investor."
-- John L., Texas

"The potential higher returns than other investments and the large amount of liquidity -- when interest rates increase to a point where alternate, more secure investments, yield similar potential ROE. i.e., a 7% interest rate of return would attract investors away from stocks and into those yielding this higher ROE."
-- Tony D., Virginia

"It looks good now. When the economy slows up there's going to be a lot of debt to pay. With the prices and multiples being paid there has to be strong cashflow to sustain a slow economy. I don't think private equity will be able to stay in and will look to the public market to bail them out. The shareholders will get it in the end just like the dot com's left people hanging!"
-- Randy R., Kentucky