Assume you sit on the Board of Directors at a technology company. The company provides technology services to cable providers such as Comcast and Verizon. The services offered by the company are directly related to maintaining the communication between the cable providers and the set top boxes. Over the past 10 years consumers have cut the cord, looking for alternatives to the high price of cable TV. It is your opinion, the trend of consumers moving away from traditional cable TV into Internet based streaming will not only continue, but take place at a more rapid pace moving forward. The other members of the board believe it is a good idea for the company to merge with a competitor in the same industry. Write a detailed letter to the Board of Directors expressing your opinion of this idea. Refer to the economic ideas presented in the article “How mergers go wrong It is important to learn the lessons from the failures and successes of past mergers” Jul 20th 2000 The Economist.
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