- Has the (large) company stopped innovating?
- How will the innovations by the acquired company be leveraged? Is it a new line of business and profits will mainly come from cost-cutting? Or do the acquired assets add value to my existing assets?
Things are different when two merging companies have real synergies. Imagine Expedia-Google combination. Or, Ebay-Paypal.
Yes, the shareholders of Siebel, PeopleSoft and Skype are better off today. But will the customers see more innonvation? I would have loved to use VoIP to call into Google to ask it to search and retrieve information on my neighbourhood businesses. I am not so sure who wants to call into an auction site? Last call... Going! Gone!!