Re:Nvidia to Acquire Arm for $40B
by hajile on Monday September 14, 2020 @12:29PM
(#24472053)
Resources are limited. If a Samsung phone and a Motorola phone need the same screen and there's not enough to go around, what happens?
A bidding war of course.
On the surface, it's capitalism at work. In reality, Samsung winds up in a no-lose situation. If Motorola wins, Samsung gets bigger margins due to the battle. If Samsung wins, they play "pass around the money" with their accountants, but their only actual costs are those of production.
I'd note that chaebol wouldn't exist in a free market. They rely on corruption of the Korean government.
A bidding war of course.
On the surface, it's capitalism at work. In reality, Samsung winds up in a no-lose situation. If Motorola wins, Samsung gets bigger margins due to the battle. If Samsung wins, they play "pass around the money" with their accountants, but their only actual costs are those of production.
I'd note that chaebol wouldn't exist in a free market. They rely on corruption of the Korean government.