Question

Imagine that there are currently three major cell phone service providers available in the United States. The largest one has enough money to buy out the other two companies and make one giant company. What is MOST likely to happen if the largest company attempts to buy out the other two companies?

Answer 1

Answer:

explanation below

Step-by-step explanation:

Large companies in most cases, buy other smaller firms to benefit from their products or to snap up the talents they have in their system. There are also cases in which such acquisitions are made to destroy competition the smaller companies present.  

This form of acquisition can be termed “killer acquisition as the larger group tends to terminate the projects of the smaller companies and shelve whatever competing innovative projects they have before they can hit the markets with them.  

This type of scenario is known to be quite pervasive and could in some ways be very detrimental to the society. When competition is eliminated, people buy whatever they see with no alternatives around and in most cases, they pay exorbitant amount of money for telco products and services.