The rampant acquisition of early stage companies continues, as Yahoo picks up del.icio.us. I think that there’s something to this buy ’em while they’re cheap strategy. If you have enough cash, why not just buy everything and see what sticks? The worst case scenario is that you bring in some smart, creative people who have already proven they can get a product out the door.
December 9, 2005 at 4:28 pm
If there objective is really to grab talented people, I’m cool with that, but what happens to the products they’ve created if they fail to help the bottom line? If most of them just fade away, will that effect users’ perception of Yahoo?
December 9, 2005 at 5:04 pm
In my experience, products that companies aquire almost always stagnate and fade away.