Formlabs acquisition of Micronics: Difference between revisions
→References: Partial archive |
Remove redundant reference, replace citations with identical reference already present |
||
| Line 77: | Line 77: | ||
==Killer acquisition pattern== | ==Killer acquisition pattern== | ||
The Formlabs-Micronics acquisition fits the pattern described in antitrust economics as a "killer acquisition," where an incumbent firm acquires a startup to discontinue its product & prevent competitive disruption.<ref name=" | The Formlabs-Micronics acquisition fits the pattern described in antitrust economics as a "killer acquisition," where an incumbent firm acquires a startup to discontinue its product & prevent competitive disruption.<ref name="ftc-hsr" /> The term was formalized by Cunningham, Ederer, & Ma in a 2021 ''Journal of Political Economy'' study of pharmaceutical drug acquisitions. They found that 5.3% to 7.4% of acquisitions in their sample were killer acquisitions, & that these deals disproportionately occurred just below the thresholds for antitrust scrutiny.<ref name="ftc-hsr" /> | ||
The Formlabs-Micronics deal shares key characteristics with this pattern. The incumbent (Formlabs, claiming over 50% of worldwide powder bed fusion sales)<ref name="formlabs-press" /> acquired a direct competitor (Micronics) whose product overlapped with the incumbent's product line but at a fraction of the price. The acquired product was immediately discontinued.<ref name="micronics-faq" /> No replacement product at a comparable price point has been released as of April 2026.<ref name="formlabs-2025" /> | The Formlabs-Micronics deal shares key characteristics with this pattern. The incumbent (Formlabs, claiming over 50% of worldwide powder bed fusion sales)<ref name="formlabs-press" /> acquired a direct competitor (Micronics) whose product overlapped with the incumbent's product line but at a fraction of the price. The acquired product was immediately discontinued.<ref name="micronics-faq" /> No replacement product at a comparable price point has been released as of April 2026.<ref name="formlabs-2025" /> | ||