In the News
I see where Warner Bros. Discovery is giving the Paramount offer a second look at being acquired. Paramount initiated this acquisition pursuit way back in September, 2025. It has gotten much media attention, in the national news outlets as well as the business news.
If someone was not a student of economics and relied on the news media for his or her information, you may get the impression that this acquisition, and other big ones that get media attention, are the center of our economic system. In addition to this acquisition, there is also the constant chatter of how Big Tech is investing umpteen dollars in artificial intelligence. This sure has had an effect, both positive and negative on the stock market recently.
Where is this Core?
In my opinion, it started with thousands of men and women throughout the decades who, with some material and financial resources combined with inspiration, went on to create great companies, both large and small, throughout this country.
I remember reading how both Apple and Microsoft got started in garages. There is also Walt Disney starting out creating a Mickey Mouse cartoon called “Steamboat Willie.”
However, since 1980 there have been individuals and companies involved in directions that have shifted much of our economy away from innovation and more about domination. We have been introduced to such things as investment banks, leveraged buyouts, corporate raiders, hostile takeovers, private equity, private credit, stock buybacks, Pac Man defense, activist investors. In my opinion they have all immensely deviated from this basic core.
The people involved in these activities are far away, literally and figuratively, from many people found on Main Streets throughout this country. family and friends may work for local or regional businesses, where upper management has regular face-to-face contact with both employees and customers.
This personal, human interaction is, in my opinion, where you find the core of our capitalist system. Laws and tax reform should be in place to help keep businesses independent who want to be independent. Legislators should give primary attention to small business issues more than corporate campaign contributions. Large corporations are not inherently bad, but the distant relationship between management and employees and customers located hundreds of miles away or across oceans, reduces these people to being mere statistics on paper or a screen. Decisions can thus be made without the decision makers having any personal interaction with those on the front line. Decisions based on statistics is important but should also include the personal input from employees and customers.
Final Thoughts
I have written before wondering what is going through the minds of Warner employees with all this acquisition talk. Customers are also faced with the thought of less entertainment choices and possibly higher costs. This is high dollar negotiations with huge financial consequences for everyone involved. Fees and profits are to be earned by some, maybe not all. Careers may also be on the line. It is all very important.
It makes for high drama and entertaining news headlines, but has consequences. Such corporate wheeling and dealing is far removed from what occurs on Main Street America. Some may call this capitalism, and they may find sources to back that up. But, in my opinion, this corporate world contributes to the decline in some American’s belief in the capitalist system.
What do you think?
