🚀 go-pugleaf

In article <1308@sdcc15.ucsd.edu> pa1132@sdcc15.UUCP () writes:
>According to a Federated employee in El Cajon, CA store, Atari has
>seperated  itself from Federated.  Now Federated is in its own
>completely, and is expected to be bankrupted soon.  Atari is said to
>make "megabucks" by doing this because it can deduct the Federated
>loss from tax.   Federated is left to die on its own.  We should
>condemn Atari for its irresponsibility!  And if Atari can do this to
>Federated employees, nobody knows what Atari can do to Atari
>employees in the future!

What a strange point of view.  You have much to learn about the
business world.

Businesses exist to make money.  Any publicly-held corporation (such
as Atari Corp.) has an obligation to make a profit for its
stockholders.  Atari's management would be grossly negligent if they
retained Federated until its cash drain pulled the whole of the
corporation into bankruptcy.

Is this what you are advocating?

That would certainly result in the loss of the jobs of not only
Federated employees, but Atari Corp. employees as well, plus the loss
of the investments of Atari's stockholders, not to mention the effect
on all of the Atari dealers and owners.

Furthermore, there is no certainty that "Federated is left to die on
its own".  It will be sold (if a buyer can be found).  The new buyer
can inject sufficient cash into the company to keep it afloat, while
it rebuilds it from within.  The "death" of Federated is by no means
certain.

I would like to congratulate Atari for making a sound business
decision.  The only question is, "Why did Atari buy Federated in the
first place, when many independent observers said it was a bad deal?"

Longish .signature follows.  Skip now, or don't complain!

Greg Wageman			ARPA:  greg@sj.ate.slb.com
Schlumberger Technologies	BIX:   gwage
1601 Technology Drive		CIS:   74016,352
San Jose, CA 95110-1397		UUCP: ...!uunet!sjsca4!greg
(408) 437-5198
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years (or three decades) of an author's work in three lines.
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