What good would it do for Iomega to buy SyQuest, even for the $multimillions in debt? Then, in order to start manufacturing again, new contracts would have to be made with suppliers, new workers trained (since many hopefully would have found new jobs by then), and management would be faced with finding the lesser of the two evils:
(1) Continue selling the SQ drives at a loss (which precipitated this whole mess) or
(2) Raise the price of SQ drives to breakeven or above (in which the drive becomes *much* less attractive for consumers, and would garner bad PR for the company "Look at Iomega, now that they have driven SyQuest out of business, they want to soak us for these products which were so cheap from SyQuest!")
IMHO, getting some of the intellectual property, enough to make SQ disks, say, would make far more sense, as it would garner some positive PR (helping out consumers which have been stranded) and provide an advertising route for those who want to "upgrade" when their drives break.
As for "Syquest management could keep their jobs near term, etc." if you read the SyQuest thread (as I know you do, since you post there), it looks like management should be the first ones out the door.
Cameron
"If it works, don't fix it." |
