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Some analysts questioned the value of acquiring Zany Brainy, an educational toy retailer that was mired in financial troubles.
And since the deal, they say, Vivendi has done little to explain the value of acquiring Seagram or to articulate a growth plan.
Investors, too: to avoid spooking people who own shares of Facebook, Zuckerberg needed to explain the value of acquiring a company that, on the face of it, doesn't have much to do with the business of connecting the world.
BT's shares rose 8% on the news, reflecting investors' doubts about the value of acquiring MCI, plus the hope that BT might sell its existing 20% stake in the American carrier.
What can be observed reliably is that since the late nineteen-nineties, when India and Pakistan tested bombs, the perceived value of acquiring nuclear weapons around the world has increased, the cost of rule breaking has declined, and none of this has evolved to America's benefit.
Its experience tells you the value of acquiring a business [Huawei's power equipment line] in China.
Similar(45)
The new accounting approach allows Motorola to exclude charges related to the difference between the book value of acquired companies and the higher price Motorola paid for them.
For example, many companies now take large charges when they make acquisitions, to write off the value of acquired research and development work.
Excluding costs like writing down the value of acquired businesses and noncash marketing expenses, it earned 27 cents a share, exceeding Wall Street forecasts, and its shares rose $7.99, to $52.25, on Nasdaq.
Along with the promise of synergies that never materialized came massive writedowns in the value of acquired companies nearly $100 billion in AOL Time Warner's case.
The literature stresses that acquisitions offer the fastest means of building a sizable presence in a foreign market, yet they are fraught with risks of overpayment, inability to fully assess the value of acquired assets, and post-acquisition challenges including cross-cultural integration.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com