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The point of massive acquisitions are to enrich company stockholders (generally the CxO's and key management), lock up key engineering talent from the market, a
by cdumler 4y ago
The point of massive acquisitions are to enrich company stockholders (generally the CxO's and key management), lock up key engineering talent from the market, and give the manager who lead the acquisition a fat bonus. Generally, everyone else loses. To offset the cost, typically value is extracted from the bought company until the product's value dies. Short term-wise, the people involved will get a lot of money and be gone by the time the consequences cannot be ignored.
That said, acquisitions can work if there is due diligence. I'm in a company that has acquired several companies in a related field. Each of the companies have had complementary products, and the cultures were vetted to be similar ours before purchase, ie small groups (30-50 people) who have demonstrated high skill, high trust, and low ego. Finally, there has been an effort keep groups generally autonomous while finding ways to synergize employees and services. There has been a strong feeling of working together. Groups have been willing to share their expertise and experience with other.
I guess in other words: the acquisition is a good idea, even if a product is subsumed into another product, there is plenty of real work to go around for employees to do. If you have to promptly fire people "because redundancy," it wasn't being done to improve your position in the field.