Can someone explain why such high traffic sites like Slide.com, Picnik.com, Flektor.com, etc are often shutdown after acquisition? Even as of today these sites must be getting millions of hits. Not to mention that for many people it's still the go-to site for making slideshows, or picture editing.
Why not instead auction them off or maybe add a business model to cut some losses? It can't hurt more than shutting it down completely?
My guess is big companies get some sort of tax benefit from doing this? But is that the sole reason behind it? Or am I missing some part of the picture?
It would still have to be maintained so those resources are better used elsewhere. Nobody wants to work on products that aren't getting much attention either. For Google, I imagine it's about focusing on a few things that have massive potential (to really win) and they simply do not find it worthwhile spending more resources on selling it off.
Lots of possibilities. Maybe the acquisition was for the talent, not the product. Maybe the acquisition was a strategic play to shut down potential competition for another product. Maybe there were personalities or politics driving the decision. Or, possibly, they're just idiots.