24 ms·

I remember when selling to Yahoo! was the exit plan.

by rdouble 14y ago

Lewisham 14y ago
Exactly. Yahoo tried the "buy our way into being innovative" when they went on their Web 2.0 spending spree, picking up Delicious, Flickr and Upcoming. They systematically choked each one to death because the corporate structure/culture didn't support buying in companies that way (see EA for the same thing in games). Marissa Mayer may be able to stave that off this time around and Yahoo may be able to buy their way into mobile, but when mobile is so hit-driven and short-term, it seems unwise to start spending money on little things like silly TL;DR apps (that you're going to shut down, anyway). If the deal is about pushing into mobile, Yahoo needs to secure culture changers, not apps. They need to buy the Duartes and Rubensteins and Brichters, and give them full autonomy to run the mobile ship however they please. That's a longer term plan, but it pays off in actual tangible results. $100 says we never hear anything about Summly's technology again, and the kid leaves as soon as his stock vests.
- samstave 14y ago
  Yes, I am familiar with Yahoo's history as well - and clearly their leadership in the past was simply not qualified to buy their way to innovation - as they didn't come from an innovated place. Yahoo is a web 1.0 company, pre-crash and just didn't have it in their DNA to innovate out - like you said, they choked those previous acquisitions to death. That doesn't mean that the strategy of acquiring their way back to a good position is bad - it was that the leaders previously attempting to do so just didn't have it in them. I say that Mayer is their last hope.
kyllo 14y ago
So does pg. Perhaps this kid is the next pg?
- MaysonL 14y ago
  And who knows: what would have happened if Y! had promoted pg a few times, eventually to CEO. Or what will happen if this kid helps turn Y! into a YC?

24 ms·

I remember when selling to Yahoo! was the exit plan.

by rdouble 14y ago

I remember when selling to Yahoo! was the exit plan.

Lewisham 14y ago
Exactly. Yahoo tried the "buy our way into being innovative" when they went on their Web 2.0 spending spree, picking up Delicious, Flickr and Upcoming. They systematically choked each one to death because the corporate structure/culture didn't support buying in companies that way (see EA for the same thing in games). Marissa Mayer may be able to stave that off this time around and Yahoo may be able to buy their way into mobile, but when mobile is so hit-driven and short-term, it seems unwise to start spending money on little things like silly TL;DR apps (that you're going to shut down, anyway). If the deal is about pushing into mobile, Yahoo needs to secure culture changers, not apps. They need to buy the Duartes and Rubensteins and Brichters, and give them full autonomy to run the mobile ship however they please. That's a longer term plan, but it pays off in actual tangible results. $100 says we never hear anything about Summly's technology again, and the kid leaves as soon as his stock vests.
- samstave 14y ago
  Yes, I am familiar with Yahoo's history as well - and clearly their leadership in the past was simply not qualified to buy their way to innovation - as they didn't come from an innovated place. Yahoo is a web 1.0 company, pre-crash and just didn't have it in their DNA to innovate out - like you said, they choked those previous acquisitions to death. That doesn't mean that the strategy of acquiring their way back to a good position is bad - it was that the leaders previously attempting to do so just didn't have it in them. I say that Mayer is their last hope.
kyllo 14y ago
So does pg. Perhaps this kid is the next pg?
- MaysonL 14y ago
  And who knows: what would have happened if Y! had promoted pg a few times, eventually to CEO. Or what will happen if this kid helps turn Y! into a YC?