TOTAL CAPITULATION? After closing at 797.7 yesterday, the S&P 500 is up almost 5.8%! Have we hit bottom? Time to feed.
It’s tough not to be a fan of anything Meg Whitman does. But EBay’s acquisition of PayPal for $1.5 B in stock (an 18% premium) could be Meg’s first foray into the world of All-Star has beens. Why do CEO’s continue to overpay for ‘strategic’ acquisitions that the academics have proven, by and large, to be value-subtractive? The jury’s still out on this one, but three hours after the market opened, EBAY is down 4 percent.
The Grave Dancer of Telecom: IDT has developed a reputation akin to Zell’s a decade earlier. They picked up my favorite telcom, WinStar Communications, not too long ago. Now, they’re going after WorldCom pieces. I don’t see the synergy between WinStar’s fixed wireless network and the residential customers they seek to acquire, but I figure it’s worth a few bucks to see where IDT goes. After all, the original Grave Dancer was doing pretty well before the Simon acquisition. Forbes profiled IDT pretty well a few months ago.