For what reason(s) does a profitable company typically allow itself to be bought out?

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For what reason(s) does a profitable company typically allow itself to be bought out?

In: Economics

6 Answers

Anonymous 0 Comments

If they are in competition with a rival and the rival makes significant strides that can bankrupt them, it’s better to make money and leave than to keep fighting and lose.

This happened when Yahoo tried to buy out Google, Yahoo tried to be cheap, Google wanted more money so the disagreement lead to Google far surpassing and buying Yahoo. If Yahoo bought Google in it’s infancy, they would still be a major internet powerhouse as opposed to what they became.

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