[adventured]

That's like asking why didn't Yahoo, Google, Apple, Amazon etc. acquire Netflix after the Qwikster debacle when the stock imploded down to $7.x / share losing ~80% of its value (now $317 / share).

As irrational as it sounds (and it is), companies overwhelmingly prefer to chase strength in acquisitions. It makes everything about it look and sound better. They don't care about the cost difference, it's not their money/value being vaporized. They care about protecting their job, so they want positive optics, something that is perceived to move the needle on value.

[ggg9990]

It’s not irrational. Integrating an acquired knowledge work company is a costly and risky effort in terms of management bandwidth, culture clash, and business model alignment. Unless you are buying pure assets, it rarely makes sense to acquire a questionable company and risk poisoning your own. That’s why most acquisitions are of companies too small to jeopardize the acquirer or healthy enough to be a low risk and worth the effort.