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Companies Do Not Last For Ever Any Longer: Maytag as part of Whirlpool Now
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It is hard to let go, but the retirees and current employees of Maytag have finally realized that their beloved company is no more. If it exists, it will do so a wholly owned subsidiary of Whirlpool. It will not exist as a company any longer. The shareholders of Maytag agreed to let go of the reins of the company for $1.79 billion in cash and stock. Founded in 1893 by Fred Maytag, Maytag was a farmer's tool company. Mr. Maytag introduced a wooden-tub washing machine 14 years later. For 100 years, thanks to the designs of this gentleman, the company has remained a home-appliance leader. Something had to be done to assure continuity, especially when Maytag faces competitions from other brands. Here flies in Whirlpool to its rescue with a huge offer, $1.37 billion. It is clear that Whirlpool really wanted Maytag. It increased its offer three times before Maytag officials agreed to give them a chance. They rejected offers from other other appliance companies such as Haier America and other investors.
As Maytag gets folded into Whirlpool, consumers are already asking whether they will have to pay more as one competitor is out of the game. It will be interesting to find out what is going to happen.