<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: Too Big To Succeed . . .</title>
	<atom:link href="http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/</link>
	<description>Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media</description>
	<lastBuildDate>Tue, 14 Feb 2012 17:38:10 +0000</lastBuildDate>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.0.5</generator>
	<item>
		<title>By: Moss</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139852</link>
		<dc:creator>Moss</dc:creator>
		<pubDate>Sat, 17 Jan 2009 19:28:10 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139852</guid>
		<description>A lot of these deals were really deception....  to cover up the fact that the core firm had little or no organic  growth. The accounting rules allowed for much trickery with goodwill and other such nonsense.  Weill was a master at that. He was able to paper over that inherent flaw and spun it as strategic with all the associated symbiotic  benefits that would accrue.  Of course this justified a higher PE since he was a genius.  


I thought Dave Duncan who founded PeopleSoft was an ex-oracle guy.</description>
		<content:encoded><![CDATA[<p>A lot of these deals were really deception&#8230;.  to cover up the fact that the core firm had little or no organic  growth. The accounting rules allowed for much trickery with goodwill and other such nonsense.  Weill was a master at that. He was able to paper over that inherent flaw and spun it as strategic with all the associated symbiotic  benefits that would accrue.  Of course this justified a higher PE since he was a genius.  </p>
<p>I thought Dave Duncan who founded PeopleSoft was an ex-oracle guy.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: PMcKim</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139124</link>
		<dc:creator>PMcKim</dc:creator>
		<pubDate>Thu, 15 Jan 2009 01:28:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139124</guid>
		<description>Barry,
I believe you are right, except that consolidation acquisitions are successful when they completely take out competition.  Oracle&#039;s biggest acquisitions in their big markets they didn&#039;t dominate -- BEA and PeopleSoft were NOT founded by Oracle alums.  nor did they have Oracle cultures.  Only Seibel had an Oracle culture run by an ex-Oracle guy -- although all successful software companies had very aggressive management as that was a key to success, more so that technological proficiency.  

The key to Oracle&#039;s success was in taking out the competition -- pure and simple.  The issue then becomes one of merging /porting the code streams over time.  In the case of Oracle there is no other competition except for SAP in Apps and IBM in databases and plumbing.  Thus there is no other game in town no matter how bad Oracle does.

Oracle has always been dictatorial.  But so is SAP and IBM so there is little choice.  But their stuff still works.  The banks became dictatorial but their BS just didn&#039;t work anymore.  It&#039;s probably the only case of a big industry putting itself out of business.</description>
		<content:encoded><![CDATA[<p>Barry,<br />
I believe you are right, except that consolidation acquisitions are successful when they completely take out competition.  Oracle&#8217;s biggest acquisitions in their big markets they didn&#8217;t dominate &#8212; BEA and PeopleSoft were NOT founded by Oracle alums.  nor did they have Oracle cultures.  Only Seibel had an Oracle culture run by an ex-Oracle guy &#8212; although all successful software companies had very aggressive management as that was a key to success, more so that technological proficiency.  </p>
<p>The key to Oracle&#8217;s success was in taking out the competition &#8212; pure and simple.  The issue then becomes one of merging /porting the code streams over time.  In the case of Oracle there is no other competition except for SAP in Apps and IBM in databases and plumbing.  Thus there is no other game in town no matter how bad Oracle does.</p>
<p>Oracle has always been dictatorial.  But so is SAP and IBM so there is little choice.  But their stuff still works.  The banks became dictatorial but their BS just didn&#8217;t work anymore.  It&#8217;s probably the only case of a big industry putting itself out of business.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: WilliamBanzai7</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139119</link>
		<dc:creator>WilliamBanzai7</dc:creator>
		<pubDate>Thu, 15 Jan 2009 01:10:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139119</guid>
		<description>In the world of PONZINOMICs, the bigger the better.</description>
		<content:encoded><![CDATA[<p>In the world of PONZINOMICs, the bigger the better.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: flipspiceland</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139095</link>
		<dc:creator>flipspiceland</dc:creator>
		<pubDate>Wed, 14 Jan 2009 23:48:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139095</guid>
		<description>The &quot;Too Big to Succeed&quot;  theory applies equally well to the United States of America. The US has become a tumor, now too large and must be removed. 

The country has proven too big to succeed. There are no brains (or assemblage of brains) large enough to comprehend the complexity of trying to run, or  manage a country of this size and diversity. They cannot divine the Law of Unintended Consequences.

The Democratic republic has failed and is now on life support, has been for a decade or more.

The government has created 10 problems for every one it tries to solve. Why?  Because the people behind the solutions are greatly flawed men and women, and that&#039;s even before corruption sets in which is nearly immediately upon taking office. 

Like nearly all large entities that fail a new model is needed, desperately.

Downsizing the United States is the only possible way to manage the leviathan, the giant that this lumbering country has become.  Or we will just plod along and eventually die a slow death while the Asian tigers eat us for lunch.

Growing our government which now seems to have happened over the last 8 years, taking up over half of our GDP, and more cancerous growth predicted, will only hasten that fatal day.</description>
		<content:encoded><![CDATA[<p>The &#8220;Too Big to Succeed&#8221;  theory applies equally well to the United States of America. The US has become a tumor, now too large and must be removed. </p>
<p>The country has proven too big to succeed. There are no brains (or assemblage of brains) large enough to comprehend the complexity of trying to run, or  manage a country of this size and diversity. They cannot divine the Law of Unintended Consequences.</p>
<p>The Democratic republic has failed and is now on life support, has been for a decade or more.</p>
<p>The government has created 10 problems for every one it tries to solve. Why?  Because the people behind the solutions are greatly flawed men and women, and that&#8217;s even before corruption sets in which is nearly immediately upon taking office. </p>
<p>Like nearly all large entities that fail a new model is needed, desperately.</p>
<p>Downsizing the United States is the only possible way to manage the leviathan, the giant that this lumbering country has become.  Or we will just plod along and eventually die a slow death while the Asian tigers eat us for lunch.</p>
<p>Growing our government which now seems to have happened over the last 8 years, taking up over half of our GDP, and more cancerous growth predicted, will only hasten that fatal day.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: constantnormal</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139017</link>
		<dc:creator>constantnormal</dc:creator>
		<pubDate>Wed, 14 Jan 2009 19:26:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139017</guid>
		<description>Sadly, the notion of &quot;optimally sized&quot; was long ago displaced by the &quot;bigger is better&quot; meme.

We live in a culture dedicated to super-sizing, bigger portions, bigger waistlines, bigger businesses, bigger school systems, bigger businesses, bigger government.

However desirable optimal might be, it ain&#039;t gonna happen.  The only way our ginormous institutions are gonna shrink is for more efficient competitors to devour them, a bite at a time.

Of course, with our loyal best-gummint-money-can-buy backing the money-changers, such a down-sizing would necessarily imply the minimalization of these United States.</description>
		<content:encoded><![CDATA[<p>Sadly, the notion of &#8220;optimally sized&#8221; was long ago displaced by the &#8220;bigger is better&#8221; meme.</p>
<p>We live in a culture dedicated to super-sizing, bigger portions, bigger waistlines, bigger businesses, bigger school systems, bigger businesses, bigger government.</p>
<p>However desirable optimal might be, it ain&#8217;t gonna happen.  The only way our ginormous institutions are gonna shrink is for more efficient competitors to devour them, a bite at a time.</p>
<p>Of course, with our loyal best-gummint-money-can-buy backing the money-changers, such a down-sizing would necessarily imply the minimalization of these United States.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Rene Korda</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139016</link>
		<dc:creator>Rene Korda</dc:creator>
		<pubDate>Wed, 14 Jan 2009 19:25:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139016</guid>
		<description>Unfortunately, modern state tends to promote oligopoly, rather than oppose it. Though I hope evolution will straight it out.</description>
		<content:encoded><![CDATA[<p>Unfortunately, modern state tends to promote oligopoly, rather than oppose it. Though I hope evolution will straight it out.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Shnaps</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-139012</link>
		<dc:creator>Shnaps</dc:creator>
		<pubDate>Wed, 14 Jan 2009 19:18:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-139012</guid>
		<description>Exactamundo!    Excellent post, Barry.</description>
		<content:encoded><![CDATA[<p>Exactamundo!    Excellent post, Barry.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: jminsf</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-138994</link>
		<dc:creator>jminsf</dc:creator>
		<pubDate>Wed, 14 Jan 2009 18:45:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-138994</guid>
		<description>I feel this point &quot;I am in the camp that finds most of these giant mergers do not work very well.&quot; bears amplification - it isn&#039;t that they do not work very well, it is that most of them flat-out fail:

&quot;After all, many mergers ultimately don&#039;t add value to companies, and even end up causing serious damage. &quot;Studies indicate that several companies fail to show positive results when it comes to mergers,&quot; says Wharton accounting professor Robert Holthausen, who teaches courses on M&amp;A strategy. Noting that there have been &quot;hundreds of studies&quot; conducted on the long-term results of mergers, Holthausen says that researchers estimate the range for failure is between 50% and 80%.&quot;

From 2005 - Wharton Business School:    http://knowledge.wharton.upenn.edu/articlepdf/1137.pdf?CFID=2621179&amp;CFTOKEN=41130433&amp;jsessionid=a830c729da47cdb515212228867160632425</description>
		<content:encoded><![CDATA[<p>I feel this point &#8220;I am in the camp that finds most of these giant mergers do not work very well.&#8221; bears amplification &#8211; it isn&#8217;t that they do not work very well, it is that most of them flat-out fail:</p>
<p>&#8220;After all, many mergers ultimately don&#8217;t add value to companies, and even end up causing serious damage. &#8220;Studies indicate that several companies fail to show positive results when it comes to mergers,&#8221; says Wharton accounting professor Robert Holthausen, who teaches courses on M&amp;A strategy. Noting that there have been &#8220;hundreds of studies&#8221; conducted on the long-term results of mergers, Holthausen says that researchers estimate the range for failure is between 50% and 80%.&#8221;</p>
<p>From 2005 &#8211; Wharton Business School:    <a href="http://knowledge.wharton.upenn.edu/articlepdf/1137.pdf?CFID=2621179&#038;CFTOKEN=41130433&#038;jsessionid=a830c729da47cdb515212228867160632425" rel="nofollow">http://knowledge.wharton.upenn.edu/articlepdf/1137.pdf?CFID=2621179&#038;CFTOKEN=41130433&#038;jsessionid=a830c729da47cdb515212228867160632425</a></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: willid3</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-138988</link>
		<dc:creator>willid3</dc:creator>
		<pubDate>Wed, 14 Jan 2009 18:32:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-138988</guid>
		<description>i thought we got rid of all the investment bankers any way?  and why let companies write off the IBANKERS fees for M&amp;A any way? and i think we could add to Greg0658 comment.

from post “first part .. acquisitions / second half … needs to be unassembled”

there is the first part the   acquisition the beginning which includes job cuts, plants and facilities closures

the middle part, which includes among other activities job cuts, plant and facilities closures, and blame game (mostly blaming any body not responsible for the problems)

followed the end game.....which includes jobs cuts, plants and facilities closures, loss write offs, potential bankruptcy filings, etc

seems to me that the main purpose of these exercises is to stroke the CEO and fees,,,,and reduce employment and wages. 

seems to only do part 2 of that.

and of course, repeat, repeat and repeat adinfinitum</description>
		<content:encoded><![CDATA[<p>i thought we got rid of all the investment bankers any way?  and why let companies write off the IBANKERS fees for M&amp;A any way? and i think we could add to Greg0658 comment.</p>
<p>from post “first part .. acquisitions / second half … needs to be unassembled”</p>
<p>there is the first part the   acquisition the beginning which includes job cuts, plants and facilities closures</p>
<p>the middle part, which includes among other activities job cuts, plant and facilities closures, and blame game (mostly blaming any body not responsible for the problems)</p>
<p>followed the end game&#8230;..which includes jobs cuts, plants and facilities closures, loss write offs, potential bankruptcy filings, etc</p>
<p>seems to me that the main purpose of these exercises is to stroke the CEO and fees,,,,and reduce employment and wages. </p>
<p>seems to only do part 2 of that.</p>
<p>and of course, repeat, repeat and repeat adinfinitum</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Wyatt_Earl</title>
		<link>http://www.ritholtz.com/blog/2009/01/too-big-to-succeed/comment-page-1/#comment-138979</link>
		<dc:creator>Wyatt_Earl</dc:creator>
		<pubDate>Wed, 14 Jan 2009 18:16:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=16022#comment-138979</guid>
		<description>“It is unacceptable that large firms that the government is now compelled to support to preserve financial stability were among the greatest risk-takers during the boom period,” Bernanke said. “The existence of too-big-to-fail firms also violates the presumption of a level playing field among financial institutions.”

http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm</description>
		<content:encoded><![CDATA[<p>“It is unacceptable that large firms that the government is now compelled to support to preserve financial stability were among the greatest risk-takers during the boom period,” Bernanke said. “The existence of too-big-to-fail firms also violates the presumption of a level playing field among financial institutions.”</p>
<p><a href="http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm" rel="nofollow">http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm</a></p>
]]></content:encoded>
	</item>
</channel>
</rss>

