

Yahoo sale could be bad for minnows - garbowza
http://www.nytimes.com/2008/02/03/technology/03yahoo.html

======
pg
Interesting question. Yahoo hasn't actually been buying many startups for the
last couple years, because they've been feeling pinched. So not much would
change if they went away. Will the _perception_ that there are fewer acquirers
make a difference? I wonder.

Actually it would not be at all unlikely if, having acquired Yahoo, MSFT
started to buy more startups through them. It would be a smarter channel for
all that money.

~~~
dkokelley
Good observation. That's what I was thinking, that MSFT would provide the
funds Yahoo needs to purchase more startups.

------
mercurio
On the other hand, all the areas that Yahoo is currently good at could
potentially be up for grabs again. There is a real risk of Flickr, Delicious
and other 'hot properties' being neglected or ruined in the long run by
Microsoft. Think of the great lead Hotmail had before being acquired by
Microsoft and what it has achieved since. This can only be good for startups.

------
klein_waffle
Look at the recent startups bought by Yahoo. When was the last time you heard
anything from them again? The one exception is Flickr, but they were
profitable and on a rocket ride to the top before they got acquired. As for
all the others, the users are wondering when they'll ever see a new feature.

So for all we know, the situation might be better for startups after a
Microsoft-Yahoo merger.

Google's acquisitions tend to have some unique technology. Yahoo's
acquisitions have mostly been innovators with media and audiences. Does anyone
know if there's a pattern with Microsoft? Microsoft has said they want to
acquire a bunch of startups.

------
1gor
'Yahoo sale could be bad for flippers' - that's what the article means.

Obviously, many people would disagree, but why worry about early exit when
your business is profitable and/or grows like hell? Where would you get same
rate on return / risk on your cash after cashing out (you know the risk of
your business)?

I can name Facebook and 37signals as two cases when the founders were in no
rush to sell. Those seems to be good decisions so far.

------
edw519
What a stupid argument. Instead of having 3 chances in a million, now you'll
have 2.

Maybe startups would be better off if they just forgot about acquistion as an
exit strategy and concentrated more on building a sustainable business up
front.

~~~
ardit33
"Maybe startups would be better off if they just forgot about acquistion as an
exit strategy and concentrated more on building a sustainable business up
front." -- Lol, so now all those useles widget startups will be screwed.....

back to the basics.

------
ivankirigin
Giants can fail. That is a very important message for entrepreneurs, shown in
a huge blinking neon sign# by this potential deal. The question isn't just
"who will buy me" or "what if I'm copied by a giant", but also, "can I beat
the giant?"

You can.

# remember that huge neon Yahoo sign on Houston in Manhattan? I do :)

