Matthew Allen

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Thanks to Jay Gould’s blindsiding attack, and good old-fashioned corporate ineptitude on its own part, Western Union broke down and gave up on its imperial plans. Instead of dominating a business it could have bought for $100,000, the company entered into negotiations with Vail, who struck a tough bargain. Western agreed to abandon telephony forever, in exchange for 20 percent of rental income on the Edison telephone and a promise from Bell never to enter the telegraph market or offer competition to the Associated Press. 20
Matthew Allen
Case study: Western Union's capitulation
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