4 ms·

> getting acquired by big tech is one of the primary exits available to interesting startups. Right, but the claim wasn't that it was bad for the capitalist cl

> getting acquired by big tech is one of the primary exits available to interesting startups. Right, but the claim wasn't that it was bad for the capitalist class, and neither is protecting their personal interests the office's remit. Letting trusts happen is always good for someone, that's not a reason to allow them.

pavlov 4y ago
The startup ecosystem is one of USA's greatest economical strengths. Pragmatically, it's just completely puzzling to me what FTC intends to achieve here. Do they want less startups and less speculative R&D investment in America? Because it seems like a bad idea for FTC to create these new arbitrary rules that will chill investment in startups, and the only purpose is to punish a corporation whose founder has been spending $10 billion annually on R&D in VR with no profits in sight. Why not let Zuck spend on VR? Most of that money actually flows back into the US economy. Meta becoming a boring dividend-paying corporation would be enriching the capitalist class far worse.
- AlexandrB 4y ago
  Startups that exit into an acquisition by FAANG generally end up abandoning their products and hurting their customers. As someone who has been burned by this, I'd like to see this exit strategy become less common.
- runako 4y ago
  > The startup ecosystem is one of USA's greatest economical strengths. Scaled up, this is only true because some of those startups grow up to be big companies that earn profits. The counter-argument is that if a large company is allowed to buy all of its promising competitors when they are small and inexpensive, our overall business ecosystem will get weaker in the future due to that big company not having to be competitive.
  - mrkramer 4y ago
    >The counter-argument is that if a large company is allowed to buy all of its promising competitors when they are small and inexpensive, our overall business ecosystem will get weaker in the future due to that big company not having to be competitive. The better question to ask would be why the majority of founders decide to sell out to big tech companies instead of pursuing the long term vison on their own?
    - ceejayoz 4y ago
      The answer to that question is pretty obvious - most people prefer a firm billion dollars now over the possibility of 100 billion in two decades, especially if they're not independently wealthy already. The FTC can't do anything about human nature, so they're left dealing with the part of the problem they do have some leverage over.
      - Dracophoenix 4y ago
        > The FTC can't do anything about human nature, so they're left dealing with the part of the problem they do have some leverage over. Even the part they supposedly have leverage over is debatable. The courts have already thrown out numerous claims against Facebook from Lisa Khan's previous lawsuits (albeit without prejudice). From this, it should be obvious that the FTC's powers of prognostication are limited. So much so that the arguments suggesting the FTC should be permitted to due process are mind-boggling to say the least.
        Dracophoenix 4y ago
        *permitted to dispense with
- morelisp 4y ago
  > The startup ecosystem is one of USA's greatest economical strengths. I don't think there's much real evidence for this, especially the "money bubble VC founder to ad tech acquihire" pipeline sort.

pavlov 4y ago

The startup ecosystem is one of USA's greatest economical strengths. Pragmatically, it's just completely puzzling to me what FTC intends to achieve here. Do they want less startups and less speculative R&D investment in America? Because it seems like a bad idea for FTC to create these new arbitrary rules that will chill investment in startups, and the only purpose is to punish a corporation whose founder has been spending $10 billion annually on R&D in VR with no profits in sight. Why not let Zuck spend on VR? Most of that money actually flows back into the US economy. Meta becoming a boring dividend-paying corporation would be enriching the capitalist class far worse.

AlexandrB 4y ago
Startups that exit into an acquisition by FAANG generally end up abandoning their products and hurting their customers. As someone who has been burned by this, I'd like to see this exit strategy become less common.
runako 4y ago
> The startup ecosystem is one of USA's greatest economical strengths. Scaled up, this is only true because some of those startups grow up to be big companies that earn profits. The counter-argument is that if a large company is allowed to buy all of its promising competitors when they are small and inexpensive, our overall business ecosystem will get weaker in the future due to that big company not having to be competitive.
- mrkramer 4y ago
  >The counter-argument is that if a large company is allowed to buy all of its promising competitors when they are small and inexpensive, our overall business ecosystem will get weaker in the future due to that big company not having to be competitive. The better question to ask would be why the majority of founders decide to sell out to big tech companies instead of pursuing the long term vison on their own?
  - ceejayoz 4y ago
    The answer to that question is pretty obvious - most people prefer a firm billion dollars now over the possibility of 100 billion in two decades, especially if they're not independently wealthy already. The FTC can't do anything about human nature, so they're left dealing with the part of the problem they do have some leverage over.
    - Dracophoenix 4y ago
      > The FTC can't do anything about human nature, so they're left dealing with the part of the problem they do have some leverage over. Even the part they supposedly have leverage over is debatable. The courts have already thrown out numerous claims against Facebook from Lisa Khan's previous lawsuits (albeit without prejudice). From this, it should be obvious that the FTC's powers of prognostication are limited. So much so that the arguments suggesting the FTC should be permitted to due process are mind-boggling to say the least.
      - Dracophoenix 4y ago
        *permitted to dispense with
morelisp 4y ago
> The startup ecosystem is one of USA's greatest economical strengths. I don't think there's much real evidence for this, especially the "money bubble VC founder to ad tech acquihire" pipeline sort.