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Well, you turn a company that can sell to anyone in the industry and make a profit, into one that can only sell to one customer and makes zero profit. The form
by smackfu 13y ago
Well, you turn a company that can sell to anyone in the industry and make a profit, into one that can only sell to one customer and makes zero profit. The former is generally going to be valued higher than the latter.
- gress 13y agoThis makes no sense. The companies Apple acquires are not turned into anything. The personnel and technology are absorbed and deployed in the creation of future products, many of which are the most popular in the world. Value is magnified - not destroyed.
- smackfu 13y agoThe question is whether the total value the company adds to Apple is greater than the total value that company would have had over its lifetime if not acquired. That doesn't mean it's a bad move for Apple to make the acquisition, but it may "destroy value" in the process.
- gress 13y agoThe total lifetime value is reflected in the price established by the market at sale time. Value is not destroyed.