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Even if the real number is only in the $20-30B range I'd still consider that "in the neighborhood" as I said. And they would have had a much stronger start by n
by guelo 11y ago
Even if the real number is only in the $20-30B range I'd still consider that "in the neighborhood" as I said. And they would have had a much stronger start by not having to build a brand from scratch.
- smt88 11y agoI take your point, but I want to add a couple more things. Buying a company costs a lot more than the purchase price. Due diligence, regulatory compliance, legal expenses, HR expenses, lost productivity due to changes, employee turnover, and other factors put a huge premium on top of that price. Plus, a company that you buy has its own cash-flows, assets, and liabilities, and those might be costly, too. It's not always a good idea to buy a ship that's slowly sinking. I think Microsoft has done incredibly well without Yahoo, and it's also using Bing in interesting ways that don't require direct competition with Google (powering Cortana, for example).
- jacquesm 11y agoYou forgot break-off risks related to the buyer.