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To me it seems confounding that Meta doesn't just figure out a long term strategy to do the opposite of acquihire. Basically while forming a highly experiment
by somethoughts 4y ago
To me it seems confounding that Meta doesn't just figure out a long term strategy to do the opposite of acquihire. Basically while forming a highly experimental group like EchoVR and/or acquire hiring like EchoVR, prepare to have the optionality to do a micro-spin off where the team gets some equity and Meta maintains a 50% stake, which enables a future spin-in.
I could see how EchoVR might not make much of a dent in Meta's earnings, but that'd be a significant customer base to start off with.
This applies to other FAANG companies too - like Google. Why not take a handful of Fuschia engineers, group them together and then have them partner with say, Framework.
- AdrianB1 4y agoWhere should that strategy come from? In the end of the day, Meta is just the company of one huge and profitable product (Facebook) that just happened to be successful, not the result of a great strategy. There is no history of a great strategy to support the expectation of having one now. But they have a lot of money, so acquisitions are easy.
- somethoughts 4y agoAgree - probably the better way to structure the deal would have been to do a partnership where the smaller company uses the SSO of the FAANG company and future profit sharing in exchange for cash, equity and server infrastructure. Alas - definite agreement - likely structuring acquisitions to account for higher interest rates and future layoffs a decade into the future is probably asking too much of management.