UMG has a better future with Comcast. It's called autonomy and freedom versus under the hegemony of TCI mediated authority. What does T do for UMG? Don't you know why Comcast left? Oh, the thread didn't want to get into that, did they.
I respectfully disagree. UMG may not have a better future with Comcast. A better future would lie in the dominant deployment of Cable modems. If UMG joins a weaker company (Comcast), their overal chance of winning the war with ADSL camp is smaller. Because Comcast and UMG end up with weaker name, Road Runner. They also need to compete with AT&T in addition to AOL and RBOCs. This is not the best economics of scale that UMG's management can envision. I agree that UMG would get more autonomy and freedom. But when facing such an outlook of fierce competition(with ADSL and wireless), surviving, winning and making more money for the share holders are much more important than vacant autonomy and freedom. Now, UMG's management is facing a choice, join a stronger company and prosper together, or join a weaker company and run the risk of withering together (RR doesn't even have a boss).
To UMG share holders, CEO included, Does AT&T stock looks better in their option account than CMCSK or TWX stocks? I feel the answer is obvious.
So far, you haven't listed strong enough reason that would make it any sense for UMG to fall into CMCSK's chest. |
