So, IBM as an example: $125 billion? The overall firm value declined after periods of purchases. Why is the analysis limited to the shares rather than the money spent. Microsoft bought and then wrote off the Nokia purchase and investors went nuts right? Why are people not going nuts when a firm spends 1 HUNDRED Billion on something that actually declines?

This is as thrilling as a firm issuing shares or taking on debt: a re-arrangement of the balance sheet.