Talk:Conglomerate (company)

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Success[edit]

"Most conglomerates have generally proven unsuccessful". For example? - Jerryseinfeld 22:31, 18 Dec 2004 (UTC)

Vivendi-Universal[edit]

Surely this is another Media Conglomerate?

BSkyB/News International[edit]

Removed

"News International, owned by Rupert Murdoch, which owns the BSkyB satellite network in the UK, as well as the daily newspapers The Sun and The Times. Articles in Private Eye have highlighted articles in these newspapers that are ostensibly objective news coverage, but which contain subtle advertisements for Sky. In this way, leveraging assets across the conglomerate results in cheaper and less obvious advertising."

I think such a statement needs to cite specific articles. I regularly read The Times as well as other papers and all BSkyB related articles do seem to be "objective news coverage". Please remember BSkyB is a consituent of the FTSE 100 index and regularly features on the business pages of most British newspapers, many of which would rather go bust than give Rupert Murdoch free advertising. Mark83 21:52, 5 September 2005 (UTC)

Internet conglomerates[edit]

This section seems to have been altered by the same person as the syndicate article (See below), same language inserted about the "L.A.R.V.A" syndicate, supposedly on of a list of 11 other secret syndicates. No citations or supporting evidence. Been floating around since December as well.

"L.A.R.V.A. Conglomerate Syndicate involved one major corporation acquiring several smaller online businesses with the goal of forming five stable corporations." Other articles include a list of names Like Angel, Congratia etc. Pulling the edit in the hopes of keeping this article from sliding even LOWER than a C grade. — Preceding unsigned comment added by 209.78.110.100 (talk) 19:56, 6 May 2013 (UTC)

Don't understand[edit]

Hi I am not sure if I understand the following mentioned in the article about 'Conglomerate'.....can u please clarify....thanks

Potential advantages

To modern business analysts, the best argument for conglomerate organizational form is that it may allow capital to be allocated in a more efficient way. For example, a hypothetical conglomerate consists of a candy store and an internet website. Suppose the candy store has high cash flow, but very few profitable investment opportunities. The website has low cash flow, but lots of good investment projects. By combining the businesses together, the cash from the candy store can be used to make profitable investments that would otherwise not be made in the web site. The main question associated with this strategy is why this improves upon a market-based allocation of capital. That is, if the entities were standalone, then presumably the investors in the candy store could receive dividends, and then reinvest those dividends in the startup. If this market-based mechanism works well, then all profitable internet startup investments can be made without having the two entities be under common ownership. Research suggests that financial markets may not always operate efficiently due to the presence of transaction costs and asymmetric information. If this problem is severe, then the common ownership of the assets might yield a more efficient allocation of capital.66.254.231.48 00:21, 19 August 2007 (UTC)

Transaction cost = taxes and commissions. Asymmetric_information#Adverse Selection: "An employer is interested in hiring a new employee who is skilled in learning. Of course, all prospective employees will claim to be skilled at learning, but only they know if they really are. This is an information asymmetry"
management has more choices in the conglomerate to 'allocate capital' in better projects. this is known as reinvestment risk. suppose you have a 12% - 30 year bond, and interest rates are 6%. when your 30 year bond principal is paid to you, your interest income is halved.
and the Teledyne example, when you can borrow at 6%, and invest in companies with projects that product 12% you have growing earnings pohick (talk) 02:16, 28 May 2009 (UTC)

Mitsubishi[edit]

Good day. Mitsubishi is mentioned as a Japanese conglomerate, and while conglomerates in Japan still exist in the form of the trading companies ("Sogo-shosha"), Mitsubishi in its current form consists of several completely different publicy traded entities. Pre-WWII, Mitsubishi, along with Mitsui, Sumitomo, and others was a true conglomerate. Please see the entry for "Zaibatsu". I will leave this comment for 3 days and if there are no objections, will edit the article to provide greater specificity on conglomerates in Japan —Preceding unsigned comment added by 124.102.77.208 (talk) 13:35, 17 January 2008 (UTC)

History first sentence[edit]

"The Dutch East India Company is considered to be one of the earliest conglomerate groups after the British East India Company (the first)..."

This seem's a strange way of wording things... Why not start with the British East India Company as the first? —Preceding unsigned comment added by 81.137.147.158 (talk) 15:29, 21 October 2009 (UTC)

Disadvantages[edit]

"Synergies are illusory." - not only does this not have any references, but the internal link it provides does not prove that they are illusory. I'm no business genius - was just reading up on this topic - but this entire article needs a redo. It sounds so bias. Probably written by a high-up employee of a conglomerate. Don't know how to sign off either, so - Anonymous, 16:33, 09/02/2011 (GMT+10) —Preceding unsigned comment added by 131.170.90.3 (talk) 05:34, 9 February 2011 (UTC)