HappySqurriel on 13 June 2008
If you buy a large (well known) established developer you're probably going to pay a premium for it based on the talent in the company, the value of the IPs they have already produced, and the expectations of IPs yet to come; you don't really buy any of these things when you actually buy the company. What this means is that (from an investment perspective) your potential return on investment is very small. In contrast when you buy a smaller company you're buying a large unknown; you don't know whether they will be able to deliver a high quality product that will resonate with consumers.
Now there are reasons why you would choose to buy a large well know developer, or to buy a smaller developer, but there is no better or worse choice ...
