Doesn't that just demonstrate that the market is distortionary then? If they can't IPO and they can't be profitable on their own then they aren't creating real value and so the existence of Facebook and other companies that act as acquirers is value destroying rather than value creating.
Are you willing to say that YC isn’t creating anything value?
Both Android and iOS were the results of acquisitions of unprofitable VC funded companies. How many people who participate on HN are employed by a VC funded, unprofitable company? How many startup founders right here or desperately trying to get VC funding?
Every major feature of the iPhone is the result of an acquisition - multitouch, fingerprint sensors, Face ID, Siri, maps, chip design, Shortcuts, etc.
No, I'm not saying that at all. Obviously some acquisitions have been tremendously valuable. Many of those acquisitions could also have existed on their own. But the net effect of something can be negative even if individual things are positive.
My criticism was scoped only to the practice of big tech companies buying up competitors and unprofitable businesses. I think this is value destroying over the long term, though it obviously creates value for the people involved.
