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Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

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Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#71

Earlier quoted context omitted.

Well, maybe it isn't a "windfall" to someone who lives in the tech world and comes to expect such good fortune and thinks their effort should be rewarded in an outsized way. I'm sure we think it's deserved in a relative sense. But it is most definitely a windfall to the rest of the world (even the rest of the country), who work equally hard, under worse conditions, for their entire lives and cannot even hope to earn…

The windfall typically isn’t anywhere close to millions of dollars for regular employers. We’re talking about payouts on the level of buying a new car or placing a down payment on a home.

I think you meant regular employees? From my limited experience, the windfall is actually much more than a new car or down payment and can reach into the millions of dollars if the stock rises a couple hundred percent. Most of the unicorn startups that have gone IPO were offering stock options close to or above the million dollar range for senior engineers. Don’t forget the refreshes. The big limiter is actually taxes which take close to half.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#72

Earlier quoted context omitted.

Agreed, except for one point. Please don't call it a windfall. Anyone in that company that would have seen life changing amounts of money has likely put incredible effort and hard work into making this happen.

Interesting, I just thought a windfall meant "a lot of money at once", but it looks like you're right that it implies luck. So agreed, a different word would be more accurate here.

But obviously some element of luck is present here. Unless we're willing to say that the success or failure of the merger is entirely on how hard each employee worked.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#73
post #3

It would have gone through had Visa's CEO not been so honest at the time of the merger announcement saying that they intended to use Plaid's data to get a leg up on their competitors. > The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”

Maybe they weren’t as astutely aware of the antitrust political wave we seem to be in. It feels like 5 or 10 years ago this merger would have happened regardless of comments like this. I think after the 08 recession there was little appetite for anything that could make business less effective, and big business loves mergers.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#74
post #3

It would have gone through had Visa's CEO not been so honest at the time of the merger announcement saying that they intended to use Plaid's data to get a leg up on their competitors. > The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”

Such a poor comment from Kelly that I almost wonder if it was intentional.

It would seem a CEO would have other, less public, tools to torpedo a deal if they wanted to, no?

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#75
I’ve some friends that works there, so I’m hesitant to say this, because I’m sorry for them, but Plaid is a terrible company. Their main product scrapes financial data from unsuspecting users that simply think they’re making a bank transfer and not signing away the privacy and security of their banking, 401k and trading information.

https://twitter.com/seanieb/status/1298871471645761537?s=20

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#76

Earlier quoted context omitted.

This comment strikes a nerve with me - perhaps because it's "saying the quiet part loud". I thought the typical goal of hackers and startups was to "change the world" and "make a difference". How does selling to Visa accomplish those things? Isn't expressing sympathy with Plaid's staff for not getting a payout effectively saying "sorry that you might actually have to deliver on the lofty promises this time"? It's als…

>I thought the typical goal of hackers and startups Hackers and startups are two very different groups with very different ideologies and goals and incentives. No idea why you group them together. Some startups have no technical founders even. >"change the world" and "make a difference" Startups are businesses and like all businesses in the end they wish to make money. VCs, for example, are very clearly investors and…

  > Some startups have no technical founders even.
And most technical founders aren't hackers, though some definitely are.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#77

Whatever you think about Visa or this merger, this would be a major disappoint to Plaid's team members who thought they were in for a huge financial windfall. If that applies to anyone here, my sympathies and best of luck figuring out what's next for Plaid. Hopefully the morale hit isn't too big on the team.

This comment strikes a nerve with me - perhaps because it's "saying the quiet part loud". I thought the typical goal of hackers and startups was to "change the world" and "make a difference". How does selling to Visa accomplish those things? Isn't expressing sympathy with Plaid's staff for not getting a payout effectively saying "sorry that you might actually have to deliver on the lofty promises this time"? It's als…

I don't mean to be glib, but it's just a job. Pretending you have some sort of higher aspirations when you sign up to work at a generic fintech or, heck, a vast majority of startups? Mrpmhph.

At least rappers have the honesty to say it's about that cash.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#78
post #3

It would have gone through had Visa's CEO not been so honest at the time of the merger announcement saying that they intended to use Plaid's data to get a leg up on their competitors. > The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”

Such a poor comment from Kelly that I almost wonder if it was intentional.

This angle makes sense if they wanted regulators to more closely examine the acquisition target.

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#79

Earlier quoted context omitted.

This comment strikes a nerve with me - perhaps because it's "saying the quiet part loud". I thought the typical goal of hackers and startups was to "change the world" and "make a difference". How does selling to Visa accomplish those things? Isn't expressing sympathy with Plaid's staff for not getting a payout effectively saying "sorry that you might actually have to deliver on the lofty promises this time"? It's als…

>I thought the typical goal of hackers and startups Hackers and startups are two very different groups with very different ideologies and goals and incentives. No idea why you group them together. Some startups have no technical founders even. >"change the world" and "make a difference" Startups are businesses and like all businesses in the end they wish to make money. VCs, for example, are very clearly investors and…

You're on Hacker News at ycombinator.com and you have no idea why folks here associate hackers and startups?

Re: Visa and Plaid Abandon Merger After Antitrust Division’s Suit to Block

#80
post #3

It would have gone through had Visa's CEO not been so honest at the time of the merger announcement saying that they intended to use Plaid's data to get a leg up on their competitors. > The DOJ cited Visa CEO Al Kelly’s description of the deal as an “insurance policy” to neutralize a “threat to our important US debit business.”

Such a poor comment from Kelly that I almost wonder if it was intentional.

Could be attempting a balance of convincing shareholders and not come out as just eating the upstart.
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