What the Yahoo-Microsoft deal might mean for startups

There has been a lot written about what a Yahoo-Microsoft deal might mean for startups. Most of it is focuses on how it takes out two out of the three players who compete for buying startups. Yahoo and Microsoft will be preoccupied for a little while, to say the least. I just saw a contrary viewpoint from Marc Andressen and find myself in agreement with him. Marc points out that the triumverate (Google, Yahoo & Microsoft) are not the only ones who do the acquiring. He lists Amazon, AOL, CBS, Cisco, Viacom and several other acquirers. So its not as if the startup M&A market is suddenly drying up. Second and more importantly, he points out that building a startup to get acquired is foolishness anyway. And to want to get acquired by particular companies is even more foolish. I often meet entrepreneurs and realize that they are hoping to flip their startups in a year or two, and turn a neat profit. In fact, when I heard Paul Graham speak at FOWA, that seemed to be his message as well. The picture he painted was of two twenty-year olds who build something, move to Silicon Valley, live on Ramen noodles and flip the startup in 2-3 years. If that is your model, then you will mourn the preoccupation of the two potential acquirers (especially if you were targeting them for the flip). But if are focused on really building a great product and a great company, then this does not change anything.

For SlideShare, we made a decision early on that we want to change the way that people share presentations, and build a great company. This news did not change anything for us.

2 responses to “What the Yahoo-Microsoft deal might mean for startups

  1. Thank you. I think you have an attitude worth sharing.

  2. This is good food for thought.

    I too believe most early-stage acquisitions happen not by (founders’) design but due to other factors/circumstances, and planning the only exit on such a contingency ab initio may not be the best of ideas.