from The Daily Bell:
Verizon is buying Yahoo for $4.8 billion … It’s official: The sale completes Yahoo’s evolution from influential search pioneer and web portal juggernaut to, in the end, a once-dominant brand that lost its way. Parties as diverse as Warren Buffett and The Daily Mail were interested in buying Yahoo. But after a sale process that dragged on for months, Verizon (VZ, Tech30), long viewed as the frontrunner, is walking away with Yahoo’s more than one billion monthly active users. –CNN Money
Another huge merger has taken place. Perhaps a billion consumer emails plus related technology will change hands, further stratifying the Internet and providing less opportunity for others.
If people believe the pace of technological innovation has slowed in the past years, they are probably correct. As ZeroHedge pointed out in May, “Venture capital investments in Silicon Valley fell almost 20 percent in the first quarter [of 2016] from a year earlier to $4.9 billion.”
We would argue this is part of a larger trend. With such gigantic companies dominating the Internet, there is less room for groundbreaking innovation.
These large companies act as gatekeepers, preserving what has already been accomplished and ensuring to a large degree that what is now developed doesn’t threaten what has come before.
As usual, intellectual property rights are at fault. Absent court enforced intellectual property rights, the pace of technological innovation might actually pick up and technology might move in new or unexpected directions.
We’ve argued before that in the modern era, intellectual property rights are not performing the functions that were intended.
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