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Is seems to me the top five software companies are on a never-ending quest to buy up every other promising software company. GitHub, Twitch, Mojang, Instagram,

Is seems to me the top five software companies are on a never-ending quest to buy up every other promising software company. GitHub, Twitch, Mojang, Instagram, WhatsApp... I'd love to see a few smaller software companies refuse to get bought up and instead cultivate an independent mindset. Otherwise, we end up with a world completely dominated by Microsoft, Google, Apple, Amazon, and Facebook.

jtew396 6y ago
Unfortunately the smaller companies don't have a choice. Many acquisitions from Big Tech come with a threat - sell your company or we will move into your space and tank your valuation.
- enumjorge 6y ago
  Sometimes they simply don't have a viable path to staying independent and profitable. Discord has tried a few things to earn more money (premium subscriptions, a game store) that didn't work out. I don't think they have a lot of options other than selling.
  - tracedddd 6y ago
    Did they not work out? I see people boosting servers and people with paid accounts very often. It seems they had a market willing to pay.
    - HappySweeney 6y ago
      I think compared to Microsoft's offer, no.
    - xboxnolifes 6y ago
      They make revenue, but I don't think they profit. I honestly doubt my $5 subscription offsets my costs as a user + my share of the unpaying users. Not that I pay that close of attention to their financials.
- Leary 6y ago
  discord is too big to be killed this easily. any msft copycat will be like facebook trying to kill snapchat
  - deleted 6y ago
    [deleted]
fnordfnordfnord 6y ago
>I'd love to see a few smaller software companies refuse to get bought up and instead cultivate an independent mindset. Didn't Oakley sunglasses try something similar when Luxottica first tried to buy them and then Luxottica managed to ruin them and ended up buying them much cheaper? And hasn't Microsoft already done the same to a large number of startups?
- causalmodels 6y ago
  Example #1: Teams is currently eating Slack.
  - Spivak 6y ago
    Yep. It's not enough to have a better product when Teams comes "free" for a lot of orgs.
    - goalieca 6y ago
      I don’t know at which point slack is better. We use both and I find teams annoying and weird but I prefer it because it is less distracting than slack. In some ways slack feels designed to keep my attention and stay engaged.
      - gh-throw 6y ago
        I haven't used Teams in almost two years, but when I did I never felt like I was sure "where" I was, or where anything else was. I'd find myself "somewhere" not have no confidence I'd ever be able to get back. I hated using it. Anything I cared about I'd copy out, or keep notes, including stuff that I'd absolutely leave to Slack to keep for me (so, middling-important stuff). Lots of enterprise UI is like that for me, actually, including most PM software more complex than GH issues + boards. I find them extremely uncomfortable to use because I'm never confident I'm doing the right thing, or that what I'm doing is safe to do, or whether I'll be able to find the things I need again. Slack is heading that way with some of their changes (the way drafts and threads are handled is juuuuust on the edge of putting it in that territory) but I still never feel "lost" for long, on there.
maffydub 6y ago
What's in it for the smaller software companies in "refusing" to get bought up? Obviously, they have the opportunity to get even bigger and either IPO or get purchased for a higher price... but they also have a risk of losing market share (and value) to competitors... or being acquired by a larger company might give them the funding, marketing power, business alignment, etc. to accelerate their growth. (Not talking specifically about Discord - I know almost nothing about their service.)
smachiz 6y ago
Yeah.... but also a good way to get paid for a lot of people who then go on to start up new and interesting things that may or may not get dominated by the big 6.
EdwinLarkin 6y ago
That's impossible.Tech is currently unregulated anarchy. Big Tech is allowed to do whatever it wants despite obviously using predatory pricing.
rbtprograms 6y ago
There are at least a couple out there. Snapchat turned down a $3B offer from Facebook to stay independent, and I believe Twitter have turned down similar offers through the years.
- simonh 6y ago
  Dropbox as well, they're not doing too bad either with a market cap of $11bn. That's quite impressive considering pretty much everybody has developed a competing service, and they must have known that would be inevitable.
ChrisRR 6y ago
It's unlikely. I suspect many people start businesses with the intention of doing what they love and making a decent living out of it. Then the bigger the company gets, the further removed you are from your original dream and when someone waves a big pile of money in your face, it's a very tempting offer
- Aerroon 6y ago
  Another factor is that you may believe the larger company can take the idea you are passionate about further.
  - syspec 6y ago
    In practice they /usually/ take it right where you left it, and leave it there forever
    - sitzkrieg 6y ago
      or worse, at as common: make it worse in every way
- flurdy 6y ago
  This is often a very good reason why many sucessfull startups sell. Also many of the founders have an "entrepreneurial spirit", which really means to me they prefer to start things, make it a success (or not) and then move on, over and over again. They are not often a "lifer" that hang on at the same company till they retire. Some are, many not.
  - ChrisRR 6y ago
    Or similar to why engineers get stuck in managerial roles. The money stops at a certain level, then they become a manager to reach the next pay grade. Then don't enjoy their job because they're not doing the engineering, but can't go back to the lower salary once they've adjusted to the lifestyle
draw_down 6y ago
Welcome to capitalism!
ogre_codes 6y ago
Mostly Microsoft, Google, and Facebook. Amazon is far more likely to partner with a company than clone it’s products. Apple acquires mostly smaller companies, often things you’ve never heard of. Also worth noting, many of these smaller companies plan on getting acquired. That is their cash-out. In particular the ones which accept VC money are under tremendous pressure to cash out in one of these deals. I also would prefer companies stuck it out, but there are huge risks if you stick it out and massive payoffs you get from a buyout, it’s rarely in the founder’s best interest.
- bluefirebrand 6y ago
  > Amazon is far more likely to partner with a company than clone it’s products Like their notable partnership with Netflix! Oh wait no, I meant their obviously built to compete with Netflix Amazon Prime Video service.
  - ogre_codes 6y ago
    I meant partner with them then clone it’s products. Or just clone their products. That’s a total difference in meaning.

jtew396 6y ago

Unfortunately the smaller companies don't have a choice. Many acquisitions from Big Tech come with a threat - sell your company or we will move into your space and tank your valuation.

enumjorge 6y ago
Sometimes they simply don't have a viable path to staying independent and profitable. Discord has tried a few things to earn more money (premium subscriptions, a game store) that didn't work out. I don't think they have a lot of options other than selling.
- tracedddd 6y ago
  Did they not work out? I see people boosting servers and people with paid accounts very often. It seems they had a market willing to pay.
  - HappySweeney 6y ago
    I think compared to Microsoft's offer, no.
  - xboxnolifes 6y ago
    They make revenue, but I don't think they profit. I honestly doubt my $5 subscription offsets my costs as a user + my share of the unpaying users. Not that I pay that close of attention to their financials.
Leary 6y ago
discord is too big to be killed this easily. any msft copycat will be like facebook trying to kill snapchat
- deleted 6y ago
  [deleted]

fnordfnordfnord 6y ago

>I'd love to see a few smaller software companies refuse to get bought up and instead cultivate an independent mindset. Didn't Oakley sunglasses try something similar when Luxottica first tried to buy them and then Luxottica managed to ruin them and ended up buying them much cheaper? And hasn't Microsoft already done the same to a large number of startups?

causalmodels 6y ago
Example #1: Teams is currently eating Slack.
- Spivak 6y ago
  Yep. It's not enough to have a better product when Teams comes "free" for a lot of orgs.
  - goalieca 6y ago
    I don’t know at which point slack is better. We use both and I find teams annoying and weird but I prefer it because it is less distracting than slack. In some ways slack feels designed to keep my attention and stay engaged.
    - gh-throw 6y ago
      I haven't used Teams in almost two years, but when I did I never felt like I was sure "where" I was, or where anything else was. I'd find myself "somewhere" not have no confidence I'd ever be able to get back. I hated using it. Anything I cared about I'd copy out, or keep notes, including stuff that I'd absolutely leave to Slack to keep for me (so, middling-important stuff). Lots of enterprise UI is like that for me, actually, including most PM software more complex than GH issues + boards. I find them extremely uncomfortable to use because I'm never confident I'm doing the right thing, or that what I'm doing is safe to do, or whether I'll be able to find the things I need again. Slack is heading that way with some of their changes (the way drafts and threads are handled is juuuuust on the edge of putting it in that territory) but I still never feel "lost" for long, on there.

maffydub 6y ago

What's in it for the smaller software companies in "refusing" to get bought up? Obviously, they have the opportunity to get even bigger and either IPO or get purchased for a higher price... but they also have a risk of losing market share (and value) to competitors... or being acquired by a larger company might give them the funding, marketing power, business alignment, etc. to accelerate their growth. (Not talking specifically about Discord - I know almost nothing about their service.)

smachiz 6y ago

Yeah.... but also a good way to get paid for a lot of people who then go on to start up new and interesting things that may or may not get dominated by the big 6.

EdwinLarkin 6y ago

That's impossible.Tech is currently unregulated anarchy. Big Tech is allowed to do whatever it wants despite obviously using predatory pricing.

rbtprograms 6y ago

There are at least a couple out there. Snapchat turned down a $3B offer from Facebook to stay independent, and I believe Twitter have turned down similar offers through the years.

simonh 6y ago
Dropbox as well, they're not doing too bad either with a market cap of $11bn. That's quite impressive considering pretty much everybody has developed a competing service, and they must have known that would be inevitable.

ChrisRR 6y ago

It's unlikely. I suspect many people start businesses with the intention of doing what they love and making a decent living out of it. Then the bigger the company gets, the further removed you are from your original dream and when someone waves a big pile of money in your face, it's a very tempting offer

Aerroon 6y ago
Another factor is that you may believe the larger company can take the idea you are passionate about further.
- syspec 6y ago
  In practice they /usually/ take it right where you left it, and leave it there forever
  - sitzkrieg 6y ago
    or worse, at as common: make it worse in every way
flurdy 6y ago
This is often a very good reason why many sucessfull startups sell. Also many of the founders have an "entrepreneurial spirit", which really means to me they prefer to start things, make it a success (or not) and then move on, over and over again. They are not often a "lifer" that hang on at the same company till they retire. Some are, many not.
- ChrisRR 6y ago
  Or similar to why engineers get stuck in managerial roles. The money stops at a certain level, then they become a manager to reach the next pay grade. Then don't enjoy their job because they're not doing the engineering, but can't go back to the lower salary once they've adjusted to the lifestyle

draw_down 6y ago

Welcome to capitalism!

ogre_codes 6y ago

Mostly Microsoft, Google, and Facebook. Amazon is far more likely to partner with a company than clone it’s products. Apple acquires mostly smaller companies, often things you’ve never heard of. Also worth noting, many of these smaller companies plan on getting acquired. That is their cash-out. In particular the ones which accept VC money are under tremendous pressure to cash out in one of these deals. I also would prefer companies stuck it out, but there are huge risks if you stick it out and massive payoffs you get from a buyout, it’s rarely in the founder’s best interest.

bluefirebrand 6y ago
> Amazon is far more likely to partner with a company than clone it’s products Like their notable partnership with Netflix! Oh wait no, I meant their obviously built to compete with Netflix Amazon Prime Video service.
- ogre_codes 6y ago
  I meant partner with them then clone it’s products. Or just clone their products. That’s a total difference in meaning.