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Technology Stocks : IFMX - Investment Discussion

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To: Qualified Opinion who wrote (14385)8/10/2000 12:44:58 AM
From: Hardly B. Solipsist  Read Replies (2) of 14631
 
I'm not sure that I understand the response. To what "hype" were you referring.

My question was, has anyone ever seen anyone a case where company A buys company B and then the management of company B shortly thereafter ends up in control of the company A+B, and had that change be successful?

It's no secret that I'm long ORCL and SEBL, but I don't see what the question has to do with that. I have an emotional attachment to IFMX, but I got spooked when Phil White bought Stonebraker's company a few years ago and then turned the technical management over to Stonebraker (which was what I expected to happen given the huge price IFXM paid). Since I'd seen Stonebraker's companies fail before, I crossed IFMX off my list. I have looked at it repeatedly since then, and I keep wanting to believe that it's coming back, but as I said, I keep chickening out.

I have a bad feeling about this management change, but it's a generic bad feeling -- that is, I have no knowledge of the particular people involved. I just think that it's very hard to make this sort of thing work because the bulk of the existing employees are suspicious of the new management, and they probably don't understand the business that is responsible for most of the current revenues of the combined company. These are serious difficulties, but they don't seem theoretically insurmountable. So I want to know if there are examples where this has worked in the past.
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