
Google’s Unusual Offer to WhatsApp - vwilson
https://www.theinformation.com/Google-s-Unusual-Offer-to-WhatsApp
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rurounijones
I 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.

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codezero
They could also make this offer so they can have a head start in acquiring a
smaller competitor cheaper ahead of the acquisition.

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rurounijones
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

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jmspring
Given 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.

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USAnum1
It appears the article is behind a pay wall, can anyone give a quick tl;dr of
what isn't in the summary?

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navyrain
The brief, insipid blurb does very little to incentivize me to register to see
the rest.

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gojomo
I 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?)

