A few years back, when Google acquired YouTube, I was heard to remark that the deal seemed kind of…imprudent. Given YouTube’s potential as a lawsuit generator, the best owners might not be the guys with some of the world’s deepest pockets.
A colleague points out that it seems equally odd for a company with pockets the depth of BP’s to be engaged in as risky an activity as deep water oil drilling. Why wasn’t this project sold off to someone with a lot less to lose?
Maybe BP expected to be protected by laws limiting its liability, but surely it was foreseeable that those laws might be circumvented, as it appears they’re about to be. So if that’s part of the answer, it’s only a small part.
I’m not saying it would be a good thing for more of these risky ventures to end up in the hands of relatively judgment-proof firms. I’m just saying I don’t understand why we don’t see more of that. What am I missing?