Famous quote by Sumner Redstone

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We understand that the real market value of Blockbuster may never be fully realized as a wholly owned part of Viacom
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"We understand that the real market value of Blockbuster may never be fully realized as a wholly owned part of Viacom"

- Sumner Redstone

About this Quote

Sumner Redstone's statement concerning Hit's real market value as part of Viacom offers a glimpse into the tactical difficulties and financial considerations connected with business acquisitions and mergers. This remark can be translated on several levels, shedding light on both the broader market characteristics and particular scenarios surrounding Blockbuster and Viacom at the time.

Firstly, the declaration shows a recommendation of the limitations inherent in corporate ownership structures. By stating that the "genuine market value" of Blockbuster may never be fully understood within Viacom, Redstone implies that Blockbuster's prospective as an independent entity might be higher than as a subsidiary. Often, completely owned subsidiaries may deal with tactical or operational restraints enforced by the moms and dad company, which might prevent their development prospects or the capability to adjust swiftly to market modifications. In Blockbuster's case, belonging to a larger corporation like Viacom could limit its dexterity and innovation in responding to the quickly developing entertainment landscape.

Furthermore, Redstone's words highlight the intricate nature of appraisals and potential synergies expected in business mergers and acquisitions. The anticipated benefits, such as expense savings, increased market share, or boosted competitive placing, may not constantly emerge as prepared as soon as a business is integrated. The concept that Blockbuster's market price might be underestimated within Viacom recommends that the synergies or strategic benefits prepared for from the acquisition had actually not been completely understood or that Blockbuster kept intrinsic value that was not effectively leveraged under Viacom's ownership.

Finally, this declaration likewise works as a tactical reflection on the fast-changing characteristics of the show business, specifically during the late 20th and early 21st centuries. Given that Blockbuster was a key player in the video rental market throughout a time of significant technological interruption, combined with the rise of digital streaming services, the assessment of its market price would inherently be challenging. Redstone likely acknowledged that the paths to keeping Blockbuster's relevance and success were more complex, needing consideration of both present operations and future capacity within a rapidly transforming market landscape.

In summary, Sumner Redstone's discuss Blockbuster's market price highlights the intricacies of achieving awaited worth in business acquisitions, the constraints of subsidiary structures within larger conglomerates, and the wider industry challenges presented by market shifts and technological improvements.

About the Author

USA Flag This quote is written / told by Sumner Redstone somewhere between May 27, 1923 and today. He/she was a famous Businessman from USA. The author also have 11 other quotes.

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