AI and Ecotech Just Announced a Merger

[Tradewinds]

During mergers it always starts out as 2 independent companies that transition ( because change is a bad word) into one in 12-15 months. This will probably be no different. Just wondering who will still retain their identity and name. I would like to see the details of the merger.

+1 on this.

Where is the logic in merging two companies, just to continue running them as separate companies?

 

[NanaReefer]

Like things weren't expensive already.

 

[Railcar79]

Having worked in a shop that sells ecotechs, I am not impressed. 85% wetside failure in 12 months, mid 20s dryside failure, and coral growth under led was awesome for a few months, then tabled, and growth was Meh at best, Acans lost their colors, ect. Same from AI. I worry about the loss of competition, I can see prices getting jacked around, and growth in the options getting stale

 

[SloppyJ]

I think they will run the new gen lights for a year or so and then actually merge.

 

[Antnee]

Looks like they'll corner their high end market and keep their prices the high.

 

[jt17]

Typically if you're #1 in the industry you want to buy out #2, usually to eliminate the competition. From what I've heard, the AI fixtures might have the edge on the radions and ecotech has the money to either buy the AI design to improve their fixture or shut down AI, whichever they wish. I hope the two companies blend in a synergistic manner to bring us the next great breakthrough in reef tank lighting.

 

[Genesis Corals]

+1 on this.

Where is the logic in merging two companies, just to continue running them as separate companies?

One word "NIKE".
They have been doing it for years, buying out a brand and keep marketing it to the loyal fans. Like someone else has mentioned, my bet is they use AI as there entry brand and Ecotech as their premium brand.

 

[xthunderx]

I hope something good comes out of this, I saw them as very different companies with different priorities. Only time will tell.

 

[Lurking]

All this means is that they will now be able to collude on pricing, avoid competition with each other and allow them to increase lot buying power. Nothing about this is good for the consumer. Less competition in a free market never is. But it is funny reading the hype articles and puff pieces on this "merger" by people who are paid by these company's to do so.

 

[DaveMorris]

I agree. More competition is a good thing for us consumers. Look at the controller market…The back and forth between DA and Neptune and Reef Angel has pushed them to be more innovative (in some cases) and we the consumer benefit. There can be some benefit to sharing technologies between the two, but the limiting of competition is a real down side.

 

[Sahin]

During mergers it always starts out as 2 independent companies that transition ( because change is a bad word) into one in 12-15 months. This will probably be no different. Just wondering who will still retain their identity and name. I would like to see the details of the merger.

Like things weren't expensive already.

Looks like they'll corner their high end market and keep their prices the high.

All this means is that they will now be able to collude on pricing, avoid competition with each other and allow them to increase lot buying power. Nothing about this is good for the consumer. Less competition in a free market never is. But it is funny reading the hype articles and puff pieces on this "merger" by people who are paid by these company's to do so.

+1

Yes, they can share research and technologies...but it will come at a price. The two no longer competing against each other means they can push the price up and you either buy it at their prices or go elsewhere...

Eventually though, they will become one. It usually goes that way.

 

[miamiangler]

Merger will mean higher prices or will it be better product and more reasonable pricing ?

 

[joekool]

I'm sure they'll figure out how to continue to over charge for products that aren't any better than most out there. No reason to pay 650 for a light that a 250 light will do led wise.

 

[AJsTank]

If they really want to compete with all these Chinese lights and pumps, then they need to lower their prices.

 

[mcarroll]

I guess I really have been busy in the last 1+ years - I missed this news until just now! :sad:

Hard to believe there wasn't more buzz than a 30-post thread....EcoTech's price drop generated more. LOL

Now that we're a year down the road, does anyone have new thoughts or observations on how things are turning out?

 

[tonymission]

If they really want to compete with all these Chinese lights and pumps, then they need to lower their prices.

Why would they want to do that? They own their premium market. For as many people that think $650 is too much for a light, there's just as many people who would never use a Chinese led.

Do what you do and do it the best. I don't think they want to be all things to all people.

 

[hybridazn]

Wow zombie thread. Back from the dead hahaha