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What else are you paying $7B for if not the people? If I’m an acquiring company, I’m not optimizing for creating a very wealthy team that will leave and create
by zenlikethat 7y ago
What else are you paying $7B for if not the people? If I’m an acquiring company, I’m not optimizing for creating a very wealthy team that will leave and create another company. I want that team to work for me.
- dx034 7y agoFor the brand, customers and the product.
- onion2k 7y agoWhat else are you paying $7B for if not the people? Access to customers. User data. To remove a competitor from the market. Patents. Because the CEOs bonus depends on market share. To enter a new regional market. There are lots of reasons to buy a company. Aquihiring the team is just one.
- zenlikethat 7y agoRevenue for Datadog is about $200 million ... "access to customers" isn't going to cut it for a $7,000,000,000 price tag.
- OJFord 7y agoAnd it's surely a risky reason to be the only (or main) one, you should probably assume a good chunk will leave immediately, and another chunk after 6m-1y, I'd have thought.
- onion2k 7y agoMaybe, but you can easily guard against that by doing things like offering stock that vests over n years instead of cash.
- bdcravens 7y agoA bullet point in a product portfolio.
- Tehdasi 7y agoI've heard it said that there is a line of business wherein you buy a software company, cut costs as much as possible, and start milking existing customers. The company you buy will not grow, or be expected to last many years, but the years that they do last will be highly profitable. Enough to cover the cost of buying the business and make a nice profit along the way.
- mbesto 7y ago> What else are you paying $7B for if not the people? Uhhhh, customers?