Quote:
Originally Posted by D.R.T.
Contra deals are still better than no deals
To be fair to Archer they were thrown in the deep end - especially with the TV contract experiencing troubles after 7 did their numbers on the previous contract
Archer had to manage the outcome of the previous ownership - who over sold & under delivered on previous stakeholders/ partners
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Indeed, a contra deal is better than no deal - I guess we'll find out more today, including which division of virgin is involved, it may not be the airline.
In regard to Archer, they did substantial due diligence including the use of external tier 1 accounting firm assessments of company value. Based on that process, they bought into the company for a figure they were prepared to pay.
The company they bought was in a pretty good place but as with any company, there were aspects that needed attention and Archer (by their own later admission) didn't come to grips properly with the industry for quite some time - it was of course a new industry to them.
IF in fact Archer IS looking to move on, hopefully any incoming part owner will learn from that and work out a way to hit the ground running.