When seeking to control an industry, the bigger players often seek to buyout the smaller players and this is nothing new. I think that what's important is for these smaller players to still remain independent (after acquisition) so that users continue to have a wide range of providers to choose from.
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Hazard
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So far, Google has bought off over 200 smaller companies. In most instances, takeovers involve the companies retaining their identities and operating independently. The consumer ends up benefiting by continuing to have a wide pool to choose... See more
SystemWars
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The big negative I can think of is that narrowing the field usually means higher prices down the road. Sometimes quality also suffers when there's less competition.