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I tend to agree. It was worth having a go at buying the company, but now they've been rebuffed their next best option is simply to clone the interesting bits in house.

It'll take them six months to produce a reasonable facsimile , but then they probably don't have another feature release planned for that amount of time anyway.

Personally, I think the Xobni guys are fools for refusing the offer. If Microsoft are interested in acquiring the technology, then they're almost certainly going to become a competitor now the offer is refused. They could do far worse than selling out for 20 odd million in cash and stock, spending a couple of years working for Microsoft while their stock vests and then going on to the next big thing. Instead they've got themselves an uphill battle in which they are running very barely ahead of a corporate juggernaut.

Well whatever happens, it should be entertaining.



Yes they were foolish to turn down the offer, but competing against a culture as meeting-centric and slow as Microsoft's is less challenging than you might think, IMO.

(I can't believe they turned down the offer!)


There are a lot of factors to weight when considering a sale. It's not as simple as weighing the (rumored and potentially inaccurate) purchase price.

You can't say it was foolish unless you know everything--payment schedule (cash/stock/milestones), ambition of founders, post-acquisition employment requirements, future direction of the product.


not to mention that a sub $20M sale on $4.2M investment would not be seen favorably at all by the investors sitting on the board.


Right. I don't know what their premoney was, but it had to be in the 8-10 range I'd guess. VCs don't approve 2x returns.


"but competing against a culture as meeting-centric and slow as Microsoft's is less challenging than you might think"

I think I'll get another opinion about that from someone at Netscape, Lotus, or Corel.

Oh, never mind.


Microsoft of the 80s and mid-90s is not the Microsoft of today, is it?

You don't think there's any particular systemtic reason why Apple shipped like 5 releases of OS X in the time it took to create Vista?


Henning, I think you have hit the point that will eventually bring Microsoft to its knees unless it changes directions.

Unrelated: I've been womdering for a while where you are from with that name? Can you tell us?


I wasn't referring to Microsoft's ability to compete with quality. No sane person would argue that.

But I can think of 34 billion reasons why I wouldn't want to be in their crosshairs. And those are 2008 Benjamins.


They turned down the offer? I totally missed that. Where'd you see that?





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