You make the same mistake others do.
Possibly.
That $7 billion also bought Palm. It wasn't *entirely* luck. I recall reading analyses of US Robotics at the time that suggested that while a niche business, Palm was a very nice gem in the package.
Sure, 3Com undoubtedly gave less consideration to the value of Palm than it should have, and more to the value of the modem business than it should have (especially considering all that USR channel-stuffing - what a disgrace). But to call
the USR acquisition a mistake is IMO shortsighted.
You give too much credit to 3COM management, that the PALM purchase, along with USR, was a thought out and "strategic" move.
They got lucky! Pure and simple. The whole purchase was about buying the USR brand (and business). Boy, did they get suckered in that!
I'll take that kind of mistake, an almost 4-bagger (considering Palm alone!), thank you. I should make so many mistakes myself.
Sure, I can delude myself too that I bought 3COM (originally) for PALM. But I did not. Of course after the USR debackle I held onto to 3COM because of PALM, else I would have bailed out long ago -for a loss even.
Just because the final outcome for PALM turned out ok, doesn't mean that 3COM mgmt was "smart" and planning this all along. Far from it.
All of course, JMHO
TG |
