When to sell out
In this week's podsession Om and I talk about large companies acquiring startups. When does it make sense to sell and what are the current options available to entrepreneurs as they grow their business?
There have been many high-profile acquisitions over the past year and every week there are new rumors about what big player should buy a startup and some of the deals eventually do happen. How are large players positioning themselves? Are startups shopping themselves around as acquisition targets, seeking partnerships, or planning for their own long-term success?
The entire podcast, When to sell out, is 23 minutes long, a 10.6 MB download.
- Yahoo! business development presentation to CalTech and MIT students.
- When to ask for an acquisition?
- Is it better to instead partner with a company and establish a relationship?
- Large companies such as Google or Yahoo! are essentially competing with the venture capital community.
- Acquisition as talent acquisition.
- The built-to-flip mindset. Building to flip is building to flop.
- Startups trying to replicate the past success of others and become a "me too" play.
- What happens to a team after acquisition? Does the project stay in place and continue or is the team acquired for the talent and a few technologies before being integrated into existing teams? Del.icio.us and Yahoo! My Web as an example.
- What types of talent would larger companies like to acquire? Who adds value?
- There are more acquirers out there than Google, Yahoo!, and Microsoft.
- What role do partnerships play? Are they a viable alternative?