Our Consumer team may have a more refined view of the Dixons / Carphone merger announced yesterday, but the rationale perceived by the press peaked our TMT team interest. It seemed to go something like this… “Carphone sells connectivity, Dixons sells things…”, “… Hey, isn’t there this Internet of things coming at a rate of knots? Let’s merge!”.
Ok, I might have oversimplified. But whether my fridge orders my milk (the seemingly ubiquitous explanation for the internet of things) or not, I am sure that Dixons would not need Carphone’s know-how in connectivity to convince me to buy said fridge from them. Surely the mergers ought to come in the product companies?
In any event, I’d just check the product out in Dixons “AO showroom” then buy it from AO.com anyway… God knows they need the revenues to justify that valuation.