Originally posted by: Brian48
Originally posted by: ViRGE
Originally posted by: Brian48
I'm not going to argue that Aureal was a company that wasn't in a good position regardless of their suit with Creative, but I beg to differ on the impact of things. First and foremost, their legal problems most certainly were not over,
Creative went for an appeal which of course would generate continuous legal costs. Additionally, when they did acquire Aureal, they had this little snippet to say:
"We're pleased that the court has entered the order approving the sale to Creative," said Craig McHugh, president of Creative Labs, Inc. "Since Creative would not be able to recover significant damages given Aureal's bankruptcy, there was no upside in continuing this protracted litigation. As a result, we believe that this outcome is the best we could have expected.
Buying Aureal after the fact is a separate issue altogether that has nothing to do with the company going out of business in the first place. They simply made the highest bid.
With that in mind, I submit that regardless of Aureal's financial condition, Creative was attempting to use the legal system as a means to worsen it in an anti-competitive fashion, and as such falls under the list of despicable things they have done.
Being that as it may, that was STILL not the reason why the company TANKed. Re-read the financials, the disclosures, investor reports, etc.. The company would have folded with or without Creative. Their investors were not worried about the litegations. They cared about making a profit and clearly, this company didn't know how to do that.