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kleinbl00 · 3009 days ago · link · · parent · post: Unilever in talks to buy Jessica Alba's Honest company for $1bn
It's not so much the killer edge as there's no advantage to holding cash, there's super-cheap leverage available all over the place, and you run into dire problems issuing dividends with borrowed money. So you can invest in infrastructure, you can buy back your stock, or you can eat your competitors. There's little incentive not to do it and there are powerful disincentives to doing anything else. Additionally, mergers and acquisitions look good on a profit'n'loss table right the fuck now whereas infrastructure and research investments won't pay off for years, and that makes shareholders and ratings agencies angry.