M&A, also called mergers and acquisitions, is a business technique where a company may buy out the other company or merge operations with that company. Whatever money is used to buy out a company will go to business leaders, shareholders, etc. This might all seem glamorous, however, it turns out that it stems from many insecurities.
Many companies that seek to buy out other companies are insecure about their own operations. They think: 'man, I'd like to buy that company, because they've worked years on making that product so awesome.' What the results are is expansion. They're taking years of development and paying it off just to make their company bigger. This is all an ego battle between the major US digital companies.
The most notorious for doing buyouts (not merges) are companies like Google, Yahoo!, AOL, Facebook, Twitter, Oracle, Apple, Microsoft, News Corporation, etc. What does all of this result in? Killed jobs, company culture in a cannon, poor business ecosystem, etc.
Most top executives do not think about repercussions of M&A, but rather think selfishly on their own part for the company to keep alive. This has a lot of pros and cons.
So, what is my conclusion? Mergers and acquisitions create insecurities and are birthed by insecurities. Is this necessarily bad? Not too much, unless the company depends on buying out a ton of other companies. For example, Yahoo!, Google (not pointing fingers).
What is your take? Feel free to comment.
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