| | | | If the merger happens, EZCH revenues and profit will supposedly increase ten fold, but if the merger does not happen, the consequences will be "dire for us all" ? - Somehow the magic paperwork will make EZCH/MLNX wildly successful, but if there is no magic paperwork (at this particular price point), EZCH will supposedly have a restraining order from working with its next door neighbor in the marketplace, and be cut off from the larger market as whole, and the fate of both companies supposedly hangs in the balance? The official management commentary on the situation seems so duplicitous that ridicule might be the appropriate response. A merger may indeed make things better for both companies, but this particular union may not be what's at stake here; the price however, is. There is no legitimate reason why the companies could not work together, but if they remain independent, EZCH may have opportunities to partner with companies that are MLNX's competitors. The cheap China threat will always be there, but, as in the case of QCOM and Mediatek, QCOM was able to stay ahead by innovation, integration, and execution, and both were able to flourish, just at the high end and low end respectively, and we are talking about a huge (and growing) market here. |
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