It’s interesting to note that tech companies in America have far larger cash balances [0], which they’ve generally chosen to not spend in favor of smaller acquisitions / investments that they then develop into something larger once acquired.
This has begun to change in recent years as greater investments have occurred, but are in comparison still much smaller than what Asian tech companies are willing to throw down.
Fear of regulation is a large factor in strangling M&A here. In many respects, the U.S. government actively hampers and acts at the detriment to American tech companies, whereas it's the complete opposite in China.
Tech companies in America succeed in spite of our government. And this honestly baffles me. We should be enacting policy that supports, not hinders, the industry that quite literally is the only reason our country currently isn't in a recession.
The US tech giants can't spend their huge cash piles.
Google, Facebook, Microsoft, Intel, Amazon, Apple, Cisco, etc. are not allowed to buy up the competition freely. That's a big reason they're sitting on so much cash, they can't really spend it on anything in a sane / responsible manner. About the only thing they can safely, legally do with it is toss it back to shareholders.
Intel for example would never have been allowed to buy TSMC while they were a lot smaller than Intel. Intel isn't allowed to buy ARM or AMD. Intel wasn't allowed to buy Nvidia when Nvidia was a lot smaller. Intel has had the dominance and cash for a very long time to eat all competing semiconductor companies globally, and they would never have been allowed to do that (thus they didn't; they would have loved to do so). Intel has been under heavy government observation regarding competition for decades now, they're half crippled.
Microsoft wouldn't have been allowed to acquire Apple circa 1998-2000, even though they trivially could have done so. And dozens of other tech companies are on the: may not be acquired by Microsoft list.
Facebook isn't allowed to buy TikTok or Twitter or Pinterest or Snapchat.
Google wouldn't be allowed to buy Bing from Microsoft. Google wouldn't have been allowed to acquire Yahoo.
Amazon wouldn't be allowed to acquire Netflix or Walmart or Target.
Juniper has been sitting out there forever because Cisco isn't allowed to acquire them, along with several other prominent competing companies. And simultaneously, since Cisco isn't allowed to acquire such companies under our economic system in the first place, they then also benefit from having Juniper out there as a competition prop to point to.
[+] [-] partingshots|5 years ago|reply
This has begun to change in recent years as greater investments have occurred, but are in comparison still much smaller than what Asian tech companies are willing to throw down.
I wonder what the more correct strategy is here.
[0]: https://www.cnbc.com/2019/11/07/microsoft-apple-and-alphabet...
[+] [-] lawrenceyan|5 years ago|reply
Tech companies in America succeed in spite of our government. And this honestly baffles me. We should be enacting policy that supports, not hinders, the industry that quite literally is the only reason our country currently isn't in a recession.
[+] [-] adventured|5 years ago|reply
Google, Facebook, Microsoft, Intel, Amazon, Apple, Cisco, etc. are not allowed to buy up the competition freely. That's a big reason they're sitting on so much cash, they can't really spend it on anything in a sane / responsible manner. About the only thing they can safely, legally do with it is toss it back to shareholders.
Intel for example would never have been allowed to buy TSMC while they were a lot smaller than Intel. Intel isn't allowed to buy ARM or AMD. Intel wasn't allowed to buy Nvidia when Nvidia was a lot smaller. Intel has had the dominance and cash for a very long time to eat all competing semiconductor companies globally, and they would never have been allowed to do that (thus they didn't; they would have loved to do so). Intel has been under heavy government observation regarding competition for decades now, they're half crippled.
Microsoft wouldn't have been allowed to acquire Apple circa 1998-2000, even though they trivially could have done so. And dozens of other tech companies are on the: may not be acquired by Microsoft list.
Facebook isn't allowed to buy TikTok or Twitter or Pinterest or Snapchat.
Google wouldn't be allowed to buy Bing from Microsoft. Google wouldn't have been allowed to acquire Yahoo.
Amazon wouldn't be allowed to acquire Netflix or Walmart or Target.
Juniper has been sitting out there forever because Cisco isn't allowed to acquire them, along with several other prominent competing companies. And simultaneously, since Cisco isn't allowed to acquire such companies under our economic system in the first place, they then also benefit from having Juniper out there as a competition prop to point to.
[+] [-] unknown|5 years ago|reply
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