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The own/invest, but leave independent strategy assumes that Google itself hasn't benefited in some way from the work done. Further, you are also asking a corpo
by sologoub 9y ago
The own/invest, but leave independent strategy assumes that Google itself hasn't benefited in some way from the work done.
Further, you are also asking a corporation to admit that it's not as good at deploying capital as the smaller company. That's may be true but is a tough position to take.
I'll take the capital infusion with 4 year delay versus no capital.
- jaggederest 9y ago> Further, you are also asking a corporation to admit that it's not as good at deploying capital as the smaller company. That's may be true but is a tough position to take. That's literally what they're saying by acquiring though. They're saying "We could use this money internally to build a clone but your company is operating at a discount to what we can do ourselves" And yes, certainly, capital is good either way :)
- setr 9y agoWell, its also that the target company already has a working and functional foundation, and possibly product, and has already gone through the effort of finding experts in the area, and have a bunch of employees trained to work on the system. The choice is something like $5M acquisition or $1M building it + 2 years For a large corporation, it makes sense that money is cheaper than time