Comment Big acquisitions did create the initial innovation (Score 1) 9
If you have a small company that needs insane amounts of cash to innovate, you need investors who are willing to take huge risks. Those investors will lose more than 90% of the time so the payout when they win has to be huge. They also need the payout to be now, not 10 years from now so that, one, they can take the risk again and two, that there is a feedback mechanism so that they can learn to take better risks.
So banning buyouts, while it at first looks like it is allowing large companies to swallow the small ones and often ruin the innovation, is actually one of the main drivers in allowing small companies to raise capital in the first place.
Then there is the entire idea of ownership. You don't own Lumentum, you didn't invest in them, you aren't one of the founders, why should you have any say in whether or not they can sell THEIR company?
So banning buyouts, while it at first looks like it is allowing large companies to swallow the small ones and often ruin the innovation, is actually one of the main drivers in allowing small companies to raise capital in the first place.
Then there is the entire idea of ownership. You don't own Lumentum, you didn't invest in them, you aren't one of the founders, why should you have any say in whether or not they can sell THEIR company?