“I am still looking for proof that the 200 or so major acquisitions in the software industry over the last 15 years has been good for consumers. I would like to see more commitment from acquirers how they would flow merger synergies to consumers. And I would love to see investors quit threatening target companies with lawsuits and more if they resist an offer.
M&A is not the only way to create shareholder value. And it certainly has not shown it creates customer value.”
Frankly, we should be asking IBM the tough questions. As I wrote here “IBM has a track record of buying past-prime companies (often like PwC IBM picked up at 1/6th the value HP had discussed paying but wisely decided against), then continuing to milk them, rather than innovating around them.”
Pity the tech press can’t do the same :)
Comments
"Pity the tech press can't do the same!!"
Says a comment on a post at ZDNet “Sun stays focused on products, not acquisition talks”
“I am still looking for proof that the 200 or so major acquisitions in the software industry over the last 15 years has been good for consumers. I would like to see more commitment from acquirers how they would flow merger synergies to consumers. And I would love to see investors quit threatening target companies with lawsuits and more if they resist an offer.
M&A is not the only way to create shareholder value. And it certainly has not shown it creates customer value.”
Frankly, we should be asking IBM the tough questions. As I wrote here “IBM has a track record of buying past-prime companies (often like PwC IBM picked up at 1/6th the value HP had discussed paying but wisely decided against), then continuing to milk them, rather than innovating around them.”
"Pity the tech press can't do the same!!"
Says a comment on a post at ZDNet “Sun stays focused on products, not acquisition talks”
Amen.
As I commented during the Yahoo-Microsoft affair last year
“I am still looking for proof that the 200 or so major acquisitions in the software industry over the last 15 years has been good for consumers. I would like to see more commitment from acquirers how they would flow merger synergies to consumers. And I would love to see investors quit threatening target companies with lawsuits and more if they resist an offer.
M&A is not the only way to create shareholder value. And it certainly has not shown it creates customer value.”
Frankly, we should be asking IBM the tough questions. As I wrote here “IBM has a track record of buying past-prime companies (often like PwC IBM picked up at 1/6th the value HP had discussed paying but wisely decided against), then continuing to milk them, rather than innovating around them.”
Pity the tech press can’t do the same :)
April 15, 2009 in Industry Commentary | Permalink