If a company is heavy into acquisition of other companies, and not really into expanding / competing. is that that a good sign or bad sign?

I've noticed some larger companies tend to acquire other companies than than innovate and compete. Something like Activision Blizzard as acquired all kinds of property to basically soak it.

These companies often use the profits to fund the acquiring of the next companies. Another example of this is a company Bio-Rad which has acquired various smaller companies in order to gain their software or medical devices.

From what I've seen, it is generally more profitable when a company can do this. If a company is buying up other companies the company is on the way to do well. I find this counter intuitive as someone who has worked for these buyouts on both sides, and the knowledge / talent lost is often devastating.

So i'm wondering if when a company is buying out other companies, it must be nice because they have that kind of cash but lack of innovation and just acquisition seems like a short term gain.