Thursday, January 16, 2014

Do Acquisitions Always Kill Products?

When tech companies get acquired there is almost always a thread kicked up on Hacker News about whether the company's product will survive the acquisition.  In general, the type of acquisition the company goes through mirrors the likelihood its product will survive.  The matrix below shows likely outcomes[1].

[You can scroll the embedded Google doc below or view full spreadsheet here].

[1] These numbers are more or less made up.  I just ballparked things based on experience as well as the M&A Wikipedia pages for FB, GOOG, TWTR.  If anyone does a more rigorous study please let me know and I will update this post accordingly.

Related Posts:
What Is Your Startup Acquisition Really Worth?
5 Reasons To Sell Your Startup
M&A Ladder