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Most businesses fail. Most acquisitions get shitcanned, because statistically most of them are acquisitions of failing businesses. Then there’s the possibility
by ransackdev 3y ago
Most businesses fail. Most acquisitions get shitcanned, because statistically most of them are acquisitions of failing businesses. Then there’s the possibility they bought that company and killed it to stomp out completion and suppress the IP. Or it could have been because they needed to get funds moved, and that company was used to empty the bank, so they could ask VCs for another round, with the added bonus of that purchase raising the valuation. I’m sure there are a million other reasons but I know that every company eventually starts to gobble up other companies so it’s some “tie it up”, “use up the surplus”, or “dodge taxes” reason
- deathanatos 3y ago> Then there’s the possibility they bought that company and killed it to stomp out completion and suppress the IP. At their own expense, then, since they lacked a competing product. (And still do, and AFAICT, forever will, since I think this company has declared publicly they're out of that market.) > other reasons Yeah, sorry, none of these apply or make sense. Occam's Razor applies: it was a bad 9 figure mistake, that's all there is to it.
- ransackdev 3y agoIf we are applying Occam’s razor then the reason that they are letting the IP rot unused must be because there’s more value in doing so than there is to use it. Business don’t burn 9 figures by mistake usually and the fact they haven’t sold it off to recoup their losses tells me they didn’t make a mistake and the IP rotting unused is exactly where they want it to be and that it was worth the cost to get it. Companies will sell off losses to use the funds elsewhere. They don’t sit on assets that are worthless to them.