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Originally Posted by Cactus Chef
It's unclear how much of that they share with Kobo, though. My experience with acquisitions is that the acquired company is expected to flow money upwards to the parent company, but rarely does money flow down from the parent company to help support it.
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That can be the case. The other scenario is the Qualcomm (Flarion) / Apple (Fingerworks) / Amazon (Mobipocket, CreateSpace) model where the bought in company is devoured and stripped.
Philips bought UK Mullard in 1928 and seriously nurtured and supported it till the late 1960s.
Then others simply asset strip: Hansen of UK Ever Ready. Then USA Energiser/Eveready (NCC) was bought by Purina Petfoods. Then that bought UK Ever Ready off Hansen and killed it totally.
Thomson of Inmos. Part of Thatchers philosophy of Services only UK in 1980s.