Friedberg predicts a wave of AI-native operators acquiring stale digital businesses that haven't realized AI opportunities yet.
“And when you take a look at those businesses as a modern day AI operator, you're like, what the hell?”
Friedberg predicts AI-native operators will target first-generation digital businesses that have become stale and haven't realized AI opportunities.
“And when you take a look at those businesses as a modern day AI operator, you're like, what the hell? This thing is so underutilized.”
Friedberg argues traditional financial firms face a catch-22 in M&A: autonomy loses cross-sell leverage.
“And if they do that, they lose the leverage of their over their existing customer base, which is to cross sell digital services in.”
Friedberg says traditional firms trying to run acquired tech companies typically ruin them through M&A integration.
“And if they try and do that, then they step in and they try and run a tech company and the whole thing gets ruined and falls apart as we've seen in M and A over and over again in many different”