Thread: swa/b6
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Old 04-26-2012, 06:34 AM
  #6  
gloopy
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Originally Posted by Clear Right View Post
Gloopy,
Take a look at B6 financials, to include JetBlues fully owned subsidiary LiveTV. B6 will not be "acquired" by anybody. They may "merge", but B6 is no AirTran. SWA won't be able to use the same strong arm tactics with B6. Any transactional event will be mutually agreed upon because of B6 highly desired assets. Any suitor will have to pay top dollar or a premium for those assets, that you describe, which puts B6 in the drivers seat. Just saying, because of B6's strong position it won't be easy for anybody to "acquire", more likely "merge" on JetBlue terms vice SWA strong arm tactics.
So are those assets that drive such extreme, industry dominant value the same assets associated with a stock that's been very flat and significantly lower than its own highs for a very long time? LiveTV is cool but its not some tip of the spear game changer and its value is fully reflected already in JB's stock price. Its up to the shareholders and BOD but they all very much want to get paid too. I doubt they are thinking they will sit on the sidelines watching their investment flounder while waiting on the overestimation of a cutting edge business model to grow into its manifest destiny and rule the world.

Piling on by saying JB *will* be in the driver's seat is pretty funny though. They will have a say proportionate to the totality of all parties in a transaction. And that size may be pretty small by comparison.
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