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Dentsu's purchase of Aegis reminiscent of bubble economy

6 Comments
By Hiroshi Hiyama

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© 2012 AFP

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the latest in a line of huge foreign acquisitions by Japanese firms reminiscent of their heady overseas adventures during the bubble economy.

Hogwash. During the bubble economy, companies were playing offense -- meaning they were making so much money from a rapidly expanding Japanese economy that they saw huge opporunities to expand internationally. Now those same companies are playing defense -- meaning that with the ever shrinking Japanese economy, and their ralatively poor ability to expand their business models intenationally, like Dentsu, they are buying companies simply not to get shut out of the global economy. Totaly different strategy.

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Before, Japanese companies had all kinds of money and they were throwing it around like drunken sailors. They bought companies they had no clue how to run.

This time, the yen is so strong they think they can get these foreign companies at a bargain, and diversity their business, and expand their market share.

Except the only thing that hasn't changed is the inability of most Japanese firms to actually run a competitive and profitable business.

Domestic companies that buy out other domestic companies face a hard enough time as it is turning the bought company into a profitable one.

Also, companies that sell out to foreign firms are usually looking to cash out on a losing business. Nobody sells a business when everything is going good and profits are rising. Japanese firms aren't known for their ability to step in, trim the fat, and create a profitable company. They are known for the opposite.

I predict this will fail miserably.

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WOW!

The British are selling everything they own, now they dont anything anymore, what's next the monarchy?

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what's next the monarchy?

I'd give 5 quid for the queen.

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opss..

i mean to said "now they dont own anything anymore"

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It's a good time to sell to Japan, to the Japanese it's cheap and to the Brits they need cash.

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