Several reasons the DOJ may look kindly on the merger, first from the article you posted, it increases the possibility of innovation:
It's a judgment call; but if you ask me, the regulators should leave JDS/ SDL alone. (On the other hand, I've said that about Microsoft too.) It's a brave new world that has such mergers in it; and we should give that new world a chance to evolve before we start to place it under too many old-economy strictures.
Second, from the SJM article, the companies' products are so far removed from the consumer:
JDS makes components for fiber-optic equipment that it sells to companies like Cisco Systems and Nortel Networks. Those companies use those components -- such as lasers -- to build equipment that they sell to telephone companies. They, in turn, use the products to build lightning-fast networks to deliver high-speed Internet connections to homes and businesses.
With so many degrees of separation between JDS and the end user, the company is far from a household name. . . .
Finally,the biggest competitive threats are the giants, themselves, and I submit the DOJ should applaud these technology whipper-snappers for daring to threaten the grey-beards.
Jay, good to see you posting here. Come by more often.
Cheers!
Pat |
