May 09, 2005
Etrade Bids for Ameritrade
The online broker consolidation is well underway. According to published reports from the New York Times and Wall Street Journal, Etrade has sent an offer to acquire Ameritrade. Ameritrade is also reportedly in talks with TD Waterhouse.I just hope if Etrade does buy Ameritrade, they don't take their eye off the innovation ball. I'm quite happy with the integration of ETrade Bank with no ATM fees, ETrade brokerage, IRA, etc. Being able to switch money back and forth within a day is a god-send in a world of the 4-5 day money transfer abyss. Spending time integrating millions of Ameritrade customers may force their tech staff away from creating newer and better services. Ironic that the best stock to trade online today is Ameritrade as its up almost 20%.
E-Trade made an unsolicited bid to buy Ameritrade on Friday for more than $5.5 billion in a letter to its board, according to executives who spoke to the Times.
