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Marissa Mayer Makes First Yahoo Acquisition: Stamped

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Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#31

Great. Hiring your buddies by acquihiring their failing iPhone app startup.

I've began to think of late that this may be the most prevalent market inefficiency in the world. Hiring people you know without due process is a big reason for the incompetence that creeps into companies after a while.

This means that consistently hiring objectively while following due process could be considered a competitive advantage.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#32

Great. Hiring your buddies by acquihiring their failing iPhone app startup.

I've began to think of late that this may be the most prevalent market inefficiency in the world. Hiring people you know without due process is a big reason for the incompetence that creeps into companies after a while.

This means that consistently hiring objectively while following due process could be considered a competitive advantage.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#33

Earlier quoted context omitted.

Ha! I'm inclined to agree that their product was doing well simply because it was discontinued immediately after Yahoo bought them. Isn't killing successful products what Yahoo is known for?

This type of snarky comment diminishes the level of discourse here. Please stop making them, and please encourage others to stop making them.

Your comment is far more meta than the OP, he makes a claim that Yahoo has propensity for killing acquired services... that's germane to the subject of this thread, yours is not...

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#35

Great. Hiring your buddies by acquihiring their failing iPhone app startup.

Well, they were failing in terms of user traction and numbers yes, but the app itself was really nice to use, well designed and will give Yahoo a nice iOS developer talent pool to work with.

Buying a successful iPhone app start up would have been way more expensive.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#36
post #29
post #27

Earlier quoted context omitted.

raising funds != success What was that comparison? No one says, "congratulations on that huge loan you just took out!". I'm sure the team was great, but I'm confused as to why we should be lauding this state of affairs. If they were making money, then why should they all have up and left to go work at Yahoo!? From the, admittedly poor on information and high on snark, position I'm comfortably seated on it seems like…

raising funds != taking a loan And if you've ever raised funds then yes, it's an accomplishment and cause to celebrate. Just get back to work the next day.

reference > http://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theor...

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#37
post #36
post #29

Earlier quoted context omitted.

raising funds != taking a loan And if you've ever raised funds then yes, it's an accomplishment and cause to celebrate. Just get back to work the next day.

reference > http://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theor...

Raising the value of your firm is not the only reason to celebrate as a company; successfully making it possible to continue operating/expanding for another year is a good thing.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#38
It's great they are putting mobile at the forefront of their strategic direction.

I don't think Yahoo's web presence can be salvaged - they have just fallen too far behind Google, Facebook, and the multitude of other leading social platforms.

But mobile is a chance for Yahoo to reset it's identity, it's brand, it's UI, it's relationship to users. It has a chance to become cool again.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#39
post #36

Earlier quoted context omitted.

reference > http://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theor...

Raising the value of your firm is not the only reason to celebrate as a company; successfully making it possible to continue operating/expanding for another year is a good thing.

And a loan would let you do the same. The comparison is valid. For some reason there's a stigma against debt financing because it has to be "paid back" in installments. Equity financing still has to be paid back, the transaction just has different mechanics.

Equity investments don't "raise the value" of the firm. They simply signal that other people with money believe you will generate X amount of dollars in the future. Debt financing involves signals, too: the interest rate reflects what other people with money think about your ability to generate X amount of dollars in the future (to hopefully pay back your loan). GE pays a very low interest rate on its bonds because of its value and perceived ability to pay back debt.

Re: Marissa Mayer Makes First Yahoo Acquisition: Stamped

#40

Great. Hiring your buddies by acquihiring their failing iPhone app startup.

Way to add to the conversation. Hiring your "buddies" is WAY lower risk that acqui-hiring strangers. They are a known quantity AND they have enough loyalty that they probably won't bolt the instant they are able. They'll also probably work harder for you than the average acquihire. This is how the world works-- and it makes sense. It isn't just bullshit "who you know rather than what you know". Moral of the story is…

All you say is correct, even down to the "it's who you know line", but I disagree that we should exploit it or even tolerate it. It's just Cronyism (https://en.wikipedia.org/wiki/Cronyism) and my personal moral compass rejects it.
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