Money is unreal. Money is power. And Absolute power empowers absolutely. Power empowers. It doesn’t corrupt. Money empowers you to be corrupt, do more, be more, institute and unseat governments, as you decide.
One of my financial mentors, who impacted my life profoundly would say, money is not real. I believe.
For those that have lacked money, they probably would disagree vehemently and tell you money is surely real. They can appreciate money with all their five senses (and even the sixth!)
Money becomes unreal when you reach a certain financial altitude. It is an irony of life that, the more money you have the lesser you need, while the less money you have, the more you do need it ! . Those who need it don’t have, those who have don’t need. Generally.
Take Africa’s richest man, Aliko Dangote. He only has to announce that he wants to open a Cement Factory in Katmandu, and financial institutions would fight themselves to finance the venture. However, that struggling business that desperately needs minor funding to move to the next level would have to pass through the eye of a needle (with his camel), to get funding anywhere!
The recent acquisition by Dell of EMC for a modest sum for $67 billion is a case in point. Considering the fact that Dell itself is worth only a fraction of that tiny sum but raised the sum from financiers emphasizes that money is unreal at some point.
You need money, you simply create the money. Big companies routinely raise funds by selling shares privately or in the Stock Market. Countries sell bonds and other financial instruments to create money. Banks and other financial institutions manufacture money out of thin air by making infinity returns (ROI on OPM is Infinity Return). And the money simply materializes.
My reaction, on hearing of this historic acquisition was:
Deals have been known to go awry. Like the ill advised Nokia acquisition by Microsoft. HP also made some acquisitions that came to nought, and just wasted them money. I surely hope Michael Dell hasn’t attempted what will bring his company down finally. You can’t bet this big on anything tech!
Well, perhaps you can!
For the records, some of the other mammoth tech acquisitions are:
- Hewlett-Packard buying Autonomy
- Google buying Motorola Mobility
- Nokia buying Alcatel-Lucent
- Intel buying Altera
- Facebook buying WhatsApp
- Hewlett-Packard buying Compaq
The bigger companies keep getting richer / bigger, the poor / smaller companies keep getting poorer / swallowed up, due to the big boys taking directly/indirectly from the little they they have. It happens in the jungle. The bigger / more powerful animal takes from the smaller, and also eats it up. It happens among humans, among companies. Among nations.
Is it not written that the rich rules over the poor ?
The question is if some of these acquisitions are beneficial to the generality of humanity. Companies don’t always take steps for the benefit of humanity. The Volkswagen current “emissional! travails is an exemplification.
Often, it is about the money. Technological innovations are often take a back seat and are stymied by some acquisitions. Companies are sometimes bought, then terminated, insane as that sounds!
Smaller companies are often simply driven by passion, to benefit society, not necessarily entirely for the money, The bigger companies have to please the Shareholders, and compete not just technologically but on valuation and profits made.
Let us hope that the wave of huge acquisitions in tech do not lead to a situation where there are only Elephants, Tigers and Lions left in the Technology Forest. There is a reason you have rabbits and elephants cohabiting in the Jungle, fingerlings and whales inhabiting the same ocean, and parrots and eagles flying in the same sky.