Re:Excite CEO: Why Excite didn't buy Google (2014) [audio]
by snarf21 on Wednesday November 27, 2019 @11:29AM
(#21649276)
I never understood why these companies just didn't invest as a hedge. A lot of these startups didn't need outright purchase but wanted working capital. Blockbuster could have bought 10% of Netflix as a hedge and seems like similar things here. You also don't have all the "merge everything together" nonsense that kills deals like this AOL+Time Warner and now Verizon+Yahoo+AOL. You can hedge a call option with a put option once you understand how.
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Re:Excite CEO: Why Excite didn't buy Google (2014) [audio]
by mswen on Friday November 29, 2019 @10:30AM
(#21664914)
I have wondered the same a number of times. Enough that I wrote an article on it.
Business Model Fire Insurance:The Phoenix Strategy
https://www.linkedin.com/pulse/business-model-fire-insurance...
In short I was making the point that large corporations should deliberately invest in start-ups that directly attack their own current business model. Think of this as a way of stress testing your business model with the benefit that you own a stake if the attacker happens to succeed. Side benefit, those start-ups that fail will have small teams of technically talented people who now know your market, and are now needing an acquire-hire. Pick through and hire the best out of the failed efforts.