Friday, November 16, 2012 12:34:17 PM
This is the exact reason I think a buyout will happen or be attempted soon. For other supplement companies, it's money they're losing to Muscle Pharm (even if muscle pharm is losing that money too lol). Why let Muscle Pharm take $75 million in sales every year when you can own those sales for $25 million with a buyout? It's opportunity cost at it's best.
For a non-supplement company (Under Armor) to come in and buy them out seems less likely because they'd have to invest in the infrastructure to bring down manufacturing costs while a supplement company can just implement them into their current structure.
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