4 ms·
Wait wait wait! Why would Microsoft, or any company, increase the value of a company before buying it (thus increasing the amount they have to payout to existin
by jrs235 12y ago
Wait wait wait! Why would Microsoft, or any company, increase the value of a company before buying it (thus increasing the amount they have to payout to existing shareholders)? Wouldn't you think Microsoft or some other company would buy first, then make the company worth more? For example, let's say Chevy is [seriously] thinking about buying [BatteryCompany]. Would Chevy put in an order for millions of dollars worth of batteries and then buy, requiring Chevy to pay more to existing shareholders? Or would Chevy try buying the company then placing the orders to its subsidiary?
- mschwaig 12y agoI think this is more like Chevy stopping to produce all the parts on their own and instead starting to use trusted parts provided by third parties which the rest of the industry already agrees on using. Buying the manufacturer of one such part really makes less sense if your company follows a completely different production philosophy.