May 14, 2007

Another Example of Staggering Business Acumen

The Daimler folks bought Chrysler nine years ago for $ 36 billion.

They just sold it to Cerberus, the three-headed dog, aka "Fluffy" in the Harry Potter series, for a fifth of that, $ 7.4 billion, mostly capital to go into the company rather than compensation for Daimler's shareholders.

That's a loss of about $ 3 billion a year.

The same year, McClatchy Newpapers bought the Minneapolis Star-Tribune for $ 1.2 billion. They just sold it to a private investment group for $ 530 million. If you look at the percentages, McClatchy was not as dumb as Daimler.

I just want to know what business school these folks attended. No doubt one endowed by a buggy-whip manufacturer.

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