Google’s Unusual Offer to WhatsApp
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Google’s Unusual Offer to WhatsApp
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Re: Google’s Unusual Offer to WhatsApp
#2It appears the article is behind a pay wall, can anyone give a quick tl;dr of what isn't in the summary?
Re: Google’s Unusual Offer to WhatsApp
#3I can imagine the reasoning:
"Company A said they want to be notified if we get acquisition talks wiht company B. The only reason for this is so they could make a counter-offer[1].
If Company A would only buy us to keep us out of Company B's hands then they probably don't care about us and would let us wither
So why bother?[2]"
[1] I cannot think of another reason that would cover such a short timescale
[2] ok, money, but it is still a hassle.
Re: Google’s Unusual Offer to WhatsApp
#4[deleted]
Re: Google’s Unusual Offer to WhatsApp
#5I can imagine the reasoning: "Company A said they want to be notified if we get acquisition talks wiht company B. The only reason for this is so they could make a counter-offer[1]. If Company A would only buy us to keep us out of Company B's hands then they probably don't care about us and would let us wither So why bother?[2]" [1] I cannot think of another reason that would cover such a short timescale [2] ok, money…
They could also make this offer so they can have a head start in acquiring a smaller competitor cheaper ahead of the acquisition.
Re: Google’s Unusual Offer to WhatsApp
#6Given track records, if the founders of WhatsApp wanted to keep the business going, selling to Google would have been a wrong choice. Personally, I am still waiting to see what happens to Waze as it's window of freedom comes to a close.
With Instagram and the promises made for WhatsApp by FB, this seems like a very good decision.
Re: Google’s Unusual Offer to WhatsApp
#7I can believe Google made the offer and it was rebuffed.
But, I think the price paid here suggests there were other bidders. And, while an acquirer making an offer may want to enforce a 'no shop' agreement, the acquisition target usually wants more bidders. (Does Sequoia keep secrets from Google, when a Google bid could maximize their return?)
So I'd guess Google knew WhatsApp was discussing acquisitions.
I'd love to hear more definitively about how these competing priorities play out in a real high-stakes acquisition negotiation. (Could a Facebook, via a early rich term sheet, cajole a 'no shop' agreement from a target and expect it to stick?)
Re: Google’s Unusual Offer to WhatsApp
#8It appears the article is behind a pay wall, can anyone give a quick tl;dr of what isn't in the summary?
The brief, insipid blurb does very little to incentivize me to register to see the rest.
Re: Google’s Unusual Offer to WhatsApp
#9I can imagine the reasoning: "Company A said they want to be notified if we get acquisition talks wiht company B. The only reason for this is so they could make a counter-offer[1]. If Company A would only buy us to keep us out of Company B's hands then they probably don't care about us and would let us wither So why bother?[2]" [1] I cannot think of another reason that would cover such a short timescale [2] ok, money…
They could also make this offer so they can have a head start in acquiring a smaller competitor cheaper ahead of the acquisition.
Good point.
It might also cause trouble with company B "Yeah, we promised your rivals we would tell them if someone like you approached us" is probably not the best foot to start off with :p