Even though companies have a very low success rate when it comes to…

SuperHumanAlpacaPerson578 Even though companies have a very low success rate when it comes to…Even though companies have a very low success rate when it comes to acquisitions and mergers, the strategy for doing so will always remain for a variety of reasons. The first reason I would argue is that companies will always be looking to expand and grow, you can say this for being in the spirit of greed in a sense which is a part of human nature I would argue, and if true, then mergers and take overs will never go away then even if they have a low success rate (There is a reason people still gamble!). The second thing that I would argue is that companies may do this knowing they will lose profit for the sake of cutting out other competition and secure their future in a long term sense. Facebook and Microsoft are notorious for doing this as we have seen both buy out companies in the VR space and more recently now the AI space with Microsoft acquisition of OpenAI and Facebooks purchase of Scrape. To date Facebook currently owns 94 companies. This also ties into my next point being that mergers/acquisitions also provide the benefit of transfer of new and emerging technology in some cases, as I had mentioned with Open AI being bought by Microsoft, which so far has been successful for them and allowing for the company to be the current flag ship of the AI space right now. I believe these few example show why it will continue to be apart of the world, with high risk comes high reward, and this stays true to even company mergers and acquisitions.   Do you agree with this comment and why?  I actually had the opportunity to intern at a company that makes parts for several automobile brands, and can say that custom parts are just standard parts with different configurations and materials. Therefore, if I am trying to outpace a major competitor, and feel that I can form a beneficial relationship with GM (or whichever company is of interest to me), I don’t see why not. The most important part would be an air tight contract in order to maintain any proprietary part designs, but seeing as the same companies are probably making the parts for myself and GM, partnering up would also mean that standard parts would only need to be purchased once, which saves a lot of manufacturing resources, includingtime, money, and material. If I can succeed in increasing my EV market lead without investing excessive resources in the effort, I feel that it would make sense to do so.  Do you agree with this comment and why? BusinessBusiness – Other