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A merger is an admission that a company has no better internal development project to put money into. (This also applies to stock buybacks.) This is an admissi
by bsder 5y ago
A merger is an admission that a company has no better internal development project to put money into. (This also applies to stock buybacks.)
This is an admission that the management has failed. Doubly so if they simply shut down the acquired business.
The proper "capitalistic" solution would be to allow the competitor to grow big and kill the dinosaur.
We need to block mergers even from a purely "capitalist" viewpoint because it prevents the efficient new competitors from displacing the old inefficient ones.
- zeruch 5y agoIt's also a testament to how "endless growth" has become an unquestioned, but ever more stupid 'goal'. If you can innovate at a certain scale, stay successful within x standard deviations year over year, paying dividends and making profits...why MUST it always end up being underpinned by 'the market' demanding endless scaling. If what you want is to expand horizontally or the so-called pie gets bigger and more to gain? Fine. But that, as the end all and be all itself, is growing quite daft. It's goddamn inane.