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Never underestimate the importance of ego. :-) Companies frequently make bad acquisitions due to the ego of the founder. (This is not an example) Other time
by mathattack 7y ago
Never underestimate the importance of ego. :-) Companies frequently make bad acquisitions due to the ego of the founder. (This is not an example) Other times founders spike the pet projects of their rivals.
- nipponese 7y agoA similar situation happened at my company: it's not just egos. You have a legacy product that is still bringing in a majority of the revenue, and then you have the new thing that will _eventually_ be the key rev driver. It's not easy to convince employees that they should just shut up and accept their bonuses to be dependent on converting a loss leader to "the future of the company".
- pixl97 7y ago> You have a legacy product that is still bringing in a majority of the revenue Ah the old Kodak Kompany Killer, by the time the company decides to pivot to new technology it is already too late, the entrenched highly paid people can't or won't change.
- mbesto 7y agoM&A guy here - I concur. People would be amazed to know that there is a non-zero number of situations where companies get acquired for non-financial reasons.