Discovering Economies Of Scope in Technology
There's this interesting joke that I came across in Seeking-Alpha " Intel bought McAfee because the bloatware that McAfee sells is second biggest driving force for CPU upgrades after Windows. And CPU upgrades are good for business at Intel" Its a strange acquisition in many senses.. Intel paid a huge premium ( 60% premium @ $48 per share in an all cash deal worth $ 7.7 billion in cash ).. Never heard of a tech-acquisition that big in recent times.. Even the big buys made by Oracle were a mix of cash & share options. So, what made Intel buy McAfee which runs a seemingly unrelated business of anti-virus & security software ? To understand this in a better way, there was this interesting debate between Steve Jobs @ Apple vs Adobe..It was over the unsuitability of flash for iphone..The letter by Jobs is still given on Apple site .. A lot of points in this debate are on open vs clos...