Monday, December 14, 2009

Big Bidniz

From today's New York Times,

In 1990, G.M. paid $600 million for half of Saab, and anted up $125 million in 2000 for the rest of the company, which has long commanded a small, loyal following in the United States for its idiosyncratic but stylish models.

Translation: This means in the 10 years under GM's influence, the value of Saab when from $1.2bil to $250mil, and that's not considering inflation. So either GM grossly overpaid in 1990, or that GM's involvement managed to destroy $950,000,000 in Saab's value over a decade. Which option reflects better on GM's management?