Companies that stall… which often means they have a decent, sustainable business… buy companies to simulate growth due to the perverse incentive structure of Wall Street where, if you buy a company, it is automatically assumed to be an asset worth exactly what you paid for it, but if you put more money into R&D that impacts margins and your stock gets punished. It is a symptom of the Wall Street “If you’re not growing, you’re dying” mentality. That is mostly because far too many of them are handled badly and end up with a whole of less value than the independent parts. ![]() So yes, no secret, I am not a fan of mergers and acquisitions. Stories about regulators who get lucrative jobs at the companies they regulated after leaving government service are so common as to be not worthy of coverage. The FTC and the UK’s CMA made some fleeting attempts to hold back the merger, which gave us a glimpse of the contempt for regulating bodies that large companies have before they made their token gestures, empty promises, and no doubt made sure the right people got paid behind the scenes. Microsoft announced its intention back in mid January 2022. Though, really, at this point, what is there left to say? I am sure I’ll find some words, but an actual conclusion will likely elude me. XBox plus Activision Blizzard equals something
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