I know that recently Lehman Brothers declared itself bankrupt. Does this affect the companies it manages, at all? I know one company it manages is the Walt Disney Company. I am writing a research paper on the Walt Disney Company and its income analysis. I mentioned that it was managed by Lehman Brothers Inc., and I need to know if the bankruptcy of it affects the income of Disney at all.
Thank you
Yes, it will affect Disney. Often the value of stock is based upon the appearances of having a management team that understands not only the market, but the future development of a company. With the Barclay buyout offer and other things happening in the Lehman Brothers organization, it is only logical that many investors are going to sell. They are going to be concern about the future management of Disney, the who, what, and when.
