It is a valid strategy for privately owned companies. Look at Valve—they have their flaws, but they're investing into open technologies and actually improving their product because they know they're sitting on an infinite money printer.
If they went public, no amount of profit would be enough. They would have to squeeze every last cent out of their users for the quarterly reports.
If you sell people things they want and you treat them well they keep buying from you instead of tolerating you until they stop buying from you.
Capitalism is so fucked