The dark satanic rumour mill has unconfirmed reports of American channel names bringing their large chequebooks across the pond, hoping to take advantage of the UK’s weak pound.
For those not in the know, the pound has been dropping against the dollar like a team of free-falling elephants, thanks to the government’s oven-ready financial plan. While this might make some resellers want to throw themselves off the top of a high building, one reseller told Channeleye that it was attracting deep-pocketed buyers from across the pond.
One CTO expected that more British companies would fall into US hands over the coming months. The fall in the pound provided an excellent way for American companies to get a foothold in the market and purchase a strong business.
In fact the only thing that is stopping the British channel from falling under US control is the high-interest rates which have risen since December and are currently at a nearly 40-year-high of 9.9 percent. This means many British channel firms have been carrying out M&As over the last couple of years are having to come up with better ways to service that debt.
