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Message: RE: Wencor and control....Sunpoop

RE: Wencor and control....Sunpoop

posted on Jul 10, 2005 08:37PM
Can`t speak for others, but while I get your drift regarding their non-IFE business, look what they`ve done in IFE land. First they got a service contract from APS. They saw an opportunity, and bought APS. Why? To control APS and derive a return. Now they buy IMS. Why? Same-same.

If there was no desire to control, they could have simply licensed APS`s digEplayer name and appearance from APS. They could derive a similar benefit short term, but without total control (and with a lot less risk). IMS - same-same. If it`s the TDL they were interested in, they could have licensed the tech or bought units from IMS (a la buying digEs from EDIG).

They are acquiring the chain as practicable in IFE, to control the fate and potentially derive a greater benefit (albeit with a good deal of risk).

It`s about assuming risk in order to gain control to enable a potentially greater return.

So when you ask ``Are you folks out there telling us that Wencor is dissatisfied with EDIG because it doesn`t have control over everything, design, manufacturing, EVERYTHING....?????``, my answer is ``yes``! Maybe not out-n-out pissed, but probably ``frustrated``. Each of these things they don`t control equate to lost potential revenues for them.

Throw in another item: dedication of EDIG resources to projects Wencor wants them to pursue, or pursue at a highest priority (and not take second seat to some other effort in which EDIG chooses to engage, or is contracted by others to engage).

And I`d bet that Wencor is even more frustrated to hear that EDIG is pursuing authorization of another 100M shares. That is a clear road-block/gauntlet to any acquisition action that may have been under consideration.

These things I`m pretty sure of...

SGE

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