Reply to post: Re: How can it possibly be worth that much?

Microsoft commits: We're buying GitHub for $7.5 beeeeeeellion

Anonymous Coward
Anonymous Coward

Re: How can it possibly be worth that much?

How can it possibly be worth that much?

It does not. And neither do most Californication endeavors. However, the way taxation in USA is set-up it is significantly more efficient for a large company to spaff a few Bn up the wall every year in M&A than to spend the SAME amount on internal R&D. In fact, no company in software, telecoms, networking as well as most other high tech industries can spend a few Bn to develop a product. The beancounters will not allow it because the stock market ambulance-chasers will disembowel it the moment they hear about it.

As a result this vastly overvalues the valley scene and feeds a never ending circle of "innovation" in it.

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