How Large Software Companies Destroy Startup Value • Hacker News Board

Re: How Large Software Companies Destroy Startup Value

#11

Post by fauigerzigerk » Tue, Aug 12, 2008, 7:35 PM UTC

raganwald wrote: post #9

Sometimes destroying the value of the company they acquire is the entire point of the exercise: http://daringfireball.net/2005/04/adobe_translation

Yes this happens sometimes (Oracle/Innobase,...), but in the case of Adobe/Macromedia I think this very evidently not the case. I mean just look at Flash and what has become of it since Adobe bought it.

Re: How Large Software Companies Destroy Startup Value

#12

Post by mlinsey » Tue, Aug 12, 2008, 7:41 PM UTC

I wonder how much fault lies with the bureaucracy of large companies and how much lies with the acquired team suddenly transitioning from an environment where they are poor and must fight to survive to an environment where they are (at lest comparatively) rich and have no fear of their employer going bankrupt because if their development timeline slips?

Re: How Large Software Companies Destroy Startup Value

#13

Post by slackerIII » Wed, Aug 13, 2008, 12:17 AM UTC

rdj2 wrote: post #10

I think the article was missing the '...And What To Do About It' part. Although, it may be a system that is perceived to be broken but in reality serves its masters well. The startup gets their payday and the acquiring entity may make some additional revenue and most likely get some sort of tax write-off.

I wrote down one idea here: http://www.spiteful.com/2008/08/12/so-youve-sold-your-first-...