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Thanks - I wasn't aware about the M&A carve-out, which makes sense. It reads to me like clause (c) is the most relevant: (c) all of the ownership interest of a
by overfeed 4mo ago
Thanks - I wasn't aware about the M&A carve-out, which makes sense. It reads to me like clause (c) is the most relevant:
(c) all of the ownership interest of any subsidiary, may agree with the buyer to refrain from carrying on a similar business within a specified geographic area in which the business so sold... has been carried on, so long as the buyer... carries on a like business therein.
and it prohibits competition "on a similar business". The Vite team would be blocked from competing against VoidZero, but Cloudfare isn't a similar business IMO, and they would be free to work on a private "Pronto" fork within Cloudflare (which is unlike the real-life Cloudflare/Vite scenario where they will continue public releases)
- borski 4mo agoMaybe. It would require courts and nuance; cloudflare is in a lot of businesses nowadays. It rarely comes into effect regardless because people rarely spend less than a couple years at the acquirer, but regardless.
- overfeed 4mo agoThere's also the issue of participating in a funding round is neither a merger nor an acquisition. VC investors are not covereed