Well, this isn't a new concept and certainly not one that doesn't make sense.

Microsoft's offer to purchase Yahoo!, Tata buying Jaguar and Land Rover, Google buying DoubleClick and Bharti Airtel buying MTN. All major multi million if not billion dollar companies who have recently purchased, have been purchased or looking to purchase. All these transactions have raised eyebrows and criticism.

The common denominator in these transactions though, is that these companies were not purchased for their market value, for their service offerings or for their viability as successful businesses. They were purchased for the technology!

Yahoo!'s research and development team is considered to be among the best in the online search and advertising industries. Microsoft's stand to buy Yahoo! was not as much about market dominance as it was for desire to own the technology and integrate the R&D team with their own to conceptualize and develop a newer, more advanced product that will eventually lead to market dominance!

Likewise, Tata is an emerging car manufacturer who lags behind in technology has recently acquired the manufacturing plants, the R&D team and the experienced technology to produce high quality motor vehicles that allow them to enter into markets that they don't currently have a footprint as well improve of on their existing product range with technological upgrades.

So, if you are a venture capitalist, an investor or a company with technology, I urge you to look at the technology of the companies in question more seriously and consider it to be a companies greatest asset!

Sphere: Related Content

5 Opinions

  1. angel // 12 May 2008 at 10:55

    so- you're saying i can become a captain of industry, the next bill gates, without actually doing something- as long as i have the moola!??!

  2. HoTsTePPa // 12 May 2008 at 21:56

    Well, you could. The trick to being successful is not being smart, but hiring smart people!

  3. Jared // 31 May 2008 at 22:38

    I'm so buying Tata. I mean, a company that makes the Nano can't be worth much, right? Couple singles maybe?

  4. HoTsTePPa // 01 June 2008 at 00:39

    Ha, Tata just bought Jaguar and Rover... trust me.. they have cash!

    And the Nano is a damn amazing piece of machinery! To have the technology to build a car with such high safety standards, meet all regulations AND be so cheap is damn great accomplishment!

  5. Jared // 02 June 2008 at 08:35

    Now if only they could make a hybrid car system that cheap.