Thread regarding CGG Veritas layoffs

CGG are vulnerable to take over

CGG are vulnerable to take over.

Schlumberger want out of seismic - No

Shearwater and are too small and have many ex CGG employees - No

PGS are struggling and are the last large player - possible tie up to create one mega player and control the market, with SLB withdrawal it is the best opportunity anyone has had to be dominant in the seismic market.

Polarcus - have boats and little processing, CGG have processing (actually ex Veritas processing which was good, CGG's was primitive and ditched after Geovation 1.0) - possible and would return CGG back to market dominance.

TGS - business model does not require CGG

Then there are a number of other small players Ion, spectrum, that Aussie company,..., where a merger would mean they loose their identity within the larger CGG and gain debt.

Don't get it really. Any solutions anyone?

by | Post ID: @T6Lfvz3
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4 replies (most recent on top)

'With Cloud computing, no one will want their data centers either.' So how do you think Cloud computing works ?? - except with data centers. You obviously know nothing.

by | Post ID: @T6Lfvz3-9pfc

What assets do CGG have left? Not alot

With Cloud computing, no one will want their data centers either.

by | Post ID: @T6Lfvz3-7cpp

From an investors view

If the company is closed bankrupt, it has minimal value

A just survived company has value in asset stripping.

CGG Bond rates are very high for this market, suggesting survival remains a high risk

by | Post ID: @T6Lfvz3-3ccy

Nobody would buy CGG for the entire company and its debt. It would only make sense for a company to buy part of the company, leaving the debt behind. Then when all the best parts are gone, they can let what's left go bankrupt. However, the work of the last two years had been to prevent all that from happening. Why, when the company is somewhat stable, undo all this effort? It may be years before the oil supply gets lower than the demand, all because of the unconventional production (e.g. shale). So demand for new seismic surveys isn't going to be strong for quite a long time.

by | Post ID: @T6Lfvz3-ttt

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