Yahoo is a media not a technology company. Can you recall something Yahoo has done innovative?
What's Actually Wrong with Yahoo's Purchase of Summly
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Re: What's Actually Wrong with Yahoo's Purchase of Summly
#62That's a deal between Yahoo management and Summly investors. Lucky young guys got themselves warmed up in the middle of big guys hugging each other.
Yes. Yes it is. +1 So much of what goes on in transactions in Silicon Valley has little to do with the headlines and a lot to do with power brokers and their interests. It's a shame we don't have investigative journalism in Silicon Valley any more - partly because it's out of vogue nationally, and partly because Silicon Valley journalists love to hob-nob with investors. I'd love to see a follow-the-money on this deal…
It's not necessarily "wrong". It's just the way this machine operates.
In fact I think it will be beneficial for Yahoo's future, but not for the reasons PR and news stories are hyping it.
The problem for Yahoo now is to explain it to investors who takes it all at face value.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#63This is my (pessimistic) take on this Summly thing. I think the following scenario happened: 15 year old kid does something with computers and for some reason the press is all over it. Some smart investors thinks; "hey, I can use this to make money". They invest money into this 15 year old which gives him more press coverage. Wait a few years and the investor gets his buddies at Yahoo to buy it for a substantial amou…
You're forgetting his loaded and well-connected parents.
Well, I guess that explains my hunch for:
"..and for some reason the press is all over it"
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#64" But it's critical to keep tabs on the ratio known as 'glue versus thought.' Sure, both imply progress and both are necessary. But the former is eminently mundane, replaceable, and outsource-able. The latter is typically what gives a company its edge, what is generally regarded as a competitive advantage. " I am in finance. I am glue. I take existing people, things (read: capital), and ideas and bolt them together.…
I think that his point is that glue is only as valuable as the product in which it's used. In the case of finance, it's the fact that they operate as the middleman, getting money from one place to another. The product isn't just getting people together, it's providing a smooth way to move money around. The other examples have a product where individual technologies were melded together to produce that specific produc…
I'm commenting less on Summly and more on the general case. People who bolt together existing tech into something people want are extremely valuable. They have identified demand and found a way to address it using off-the-shelf components. The risk, often, is that someone else can just as easily bolt together the same components. This risk is mitigated by locking in the demand source, e.g. through brand recognition from your first-mover position. Someone able to rapidly bolt together a product that they subsequently ensconce with piercing marketing or another form of customer lock-in is a gold mine.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#65To the author: Would you have not taken a buyout offer from Yahoo! if you were in this kids position? All HN discussions regarding this topic have just screamed jealousy/disdain. It is as if people come to HN to read an intelligent argument to argue for their immature feelings. Also, the most important premise in your argument, that their technology was licensed, is incorrect. Their natural language technology was 10…
To truely understand what's going on here you have to follow the money. All of the money.
This is not a simple story of a hard working smart kid winning the tech lottery with a hot app/technology going from rags to riches. This is an arranged marriage, a PR stunt and a good-ole-boy deal all rolled into one. It's a VC fuck-you to all people that truly have innovative ideas, viable businesses, and dedicated employees that are trying to get management to notice solutions instead of golfing with "consultants" or blowing big money on solutions that could be built in-house for 1% of the costs.
The kid was born on third base, got home on a wild pitch and some folks think he hit a home run.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#66" But it's critical to keep tabs on the ratio known as 'glue versus thought.' Sure, both imply progress and both are necessary. But the former is eminently mundane, replaceable, and outsource-able. The latter is typically what gives a company its edge, what is generally regarded as a competitive advantage. " I am in finance. I am glue. I take existing people, things (read: capital), and ideas and bolt them together.…
Whoa, whoa, whoa. Are you really equating finance with Facebook and Apple? L.M.A.O.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#67Overpaying for apps is the new overpaying for social networks for that vague master bullshit artistry of "reaching" users. Yahoo irrationally overpays for tons of stuff, AOL irrationally overpaid for Bebo, there was that high school girl that made a social network and makes millions of dollars so she bought her mom a house, there are plenty of other data points I filed away in my head over the years. Tons of things h…
It's more like Yahoo! is overpaying for app development teams. They have to, as they are way behind in mobile and nobody good wants to work there.
They have to, as they are way behind in mobile and nobody good wants to work there.
Sumly is three people and they paid about $30 million for it. Start throwing million dollar /year offers and many "good" programmers will want to work there. This stinks, IMO.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#68If "brogrammer" is a thing, this picture is next to its definition in the dictionary: http://hackingdistributed.com/images/egs-small.jpg
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#69To the author: Would you have not taken a buyout offer from Yahoo! if you were in this kids position? All HN discussions regarding this topic have just screamed jealousy/disdain. It is as if people come to HN to read an intelligent argument to argue for their immature feelings. Also, the most important premise in your argument, that their technology was licensed, is incorrect. Their natural language technology was 10…
I should not you can be disdainful without being jealous and vice versa.
Re: What's Actually Wrong with Yahoo's Purchase of Summly
#70I think the author makes this comment: "Summly's entire business model seems to revolve around catering to this demographic. Frankly, it pains me." I reads like a critique of Chubby Checker's "Twist" from a professor a Julliard. Perhaps, and I say that because I can't know what they were really thinking, but perhaps that was the point. This company had successfully "catered to this demographic" (which was defined as…
>Maybe the goal was to get more people who could quickly assemble a MVP from existing APIs that appealed to the emerging cohort of buyers and trendsetters.
There is a lot to be said for building the right thing; but the actual ability to assemble such products are very common and even the very premium skills are definitely for sale at market rates much lower than $15MM per year.