Idea: In 2007, From January to July, Google acquired more then 13 companies! It probably has a few more in pipeline. It's highly likely that Google's buying spree will never really stop. Close to 20 companies in 2007 is not a small number. Here is the list of all Google's acquisitions. Other companies like Cisco and EMC are known to do this and known to do this well, in most cases. In other cases however, companies have tremendous difficulties in porting technology (and of course people) from the acquired company and assimilate in their own. Some of the sad side effects being discarded technology and mass-layoffs. The problem being those companies were full blown companies when they were purchased, and in their growth most of them had no regards whatsoever about their current parent company or their current siblings. Had they known...? So here's an idea: how about giants like Google, Cisco, EMC,... taking active interest in startups and funding them from their beginning to shape them more amenable to acquisitions by them.
Reward: M&A can now be considered a match made in heaven! No more technology deaths and say goodbye to mass layoffs.
Bonus: The companies considering acquisitions could also participate in collaborative efforts to create solutions that might help setup a strong ecosystem. If there is significant market for co-solutions already, synergistic M&A could just be the next logical step.
Reward: M&A can now be considered a match made in heaven! No more technology deaths and say goodbye to mass layoffs.
Bonus: The companies considering acquisitions could also participate in collaborative efforts to create solutions that might help setup a strong ecosystem. If there is significant market for co-solutions already, synergistic M&A could just be the next logical step.
3 comments:
By the way, if you find out more about Cisco, you will know that it does fund startups. By Cisco employees. It lets its employees start their own companies, funds them and later acquires it under Cisco banner. Ditto for Trilogy.
Enakshi:
You're right. Cisco and a few other big companies do this already. However, M&A of two existing companies is almost always awkward and causes some grief (at both sides). Maybe, it's about time to enforce strong eco-system. That in my opinion is the only savior for Capitalism.
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