Commentary on a slow death

Pie · 03-10-2004, 01:36 PM

I would argue that the real demise of Lucent was caused not by the telecom implosion, but by bad financials managed by those self-same MBAs. The real sin was in the debt position the company took.

Technology companies can't survive with debt. They were still thinking in fuzzy-headed utility company mode. There was no need for it, either -- if they had floated a few million more stock, they could have cleared it easily. They would have survived the eventual marked meltdown, certainly with layoffs, downsizing and a much reduced stock price, but not needing to sell off and spin off all their core assets.

Well, at least I got a piece of it when it was great. What a ride!

- Pie, Bell Labs alumna

03-10-2004, 01:36 PM	#2
Pie Gone and done Join Date: Sep 2001 Posts: 4,808	I would argue that the real demise of Lucent was caused not by the telecom implosion, but by bad financials managed by those self-same MBAs. The real sin was in the debt position the company took. Technology companies can't survive with debt. They were still thinking in fuzzy-headed utility company mode. There was no need for it, either -- if they had floated a few million more stock, they could have cleared it easily. They would have survived the eventual marked meltdown, certainly with layoffs, downsizing and a much reduced stock price, but not needing to sell off and spin off all their core assets. Well, at least I got a piece of it when it was great. What a ride! - Pie, Bell Labs alumna __________________ per·son \ˈpər-sən\ (noun) - an ephemeral collection of small, irrational decisions The fun thing about evolution (and science in general) is that it happens whether you believe in it or not.

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