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From a certain perspective, the startup complex is and extremely bizarre value creation and destruction machine. You have acquisitions like this funding (in the
by netsp 17y ago
From a certain perspective, the startup complex is and extremely bizarre value creation and destruction machine. You have acquisitions like this funding (in the sense that founders and investors do this in order to achieve an acquisition like this) scores of startups who are creating real value come into being. The "successful" ones that get acquired are actually destroyed. Maybe there is some opaque value (expertise acquisition) passed to the buyer, but overall the value seems to be destroyed.
The side effect though is value created via all the other startups that get founded.
- bmelton 17y agoI think often-times those types of acquisitions are just to get the talent, or the IP from the product, moreso than to launch a new product outright. Where I see problems of course is that so often startups are acquired by bigger competitors who probably have the best of intentions, but can't help but stifle the newly acquired employees into doing things 'their way'... Their way of course being the way that allowed the startup to eat up so much of their market share with minimal funding, yadda yadda.