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Acquisition as a Business Model

Started by Daniel Ha · 1 year ago

In its initial stages, a startup is faced with two choices to make regarding its future:
Materialize a business model with a valid plan for monetization or revenue.

Pursue acquisition of your company or product.
Option 2 is still the prevailing choice for most. And it’s easy to see why. But is it wrong for a company to […] ... Continue reading »

21 comments

  • Nice article..

    "But is it wrong for a company to be formed purely with the goal of being acquired?" No!

    "And how about those that stay sovereign – were they just not promising enough to be scooped up?" In most cases, yes. But a small percentage of these startups are the ones that become Google, Apple, etc. (truly ahead of their time).
  • and this question has to be asked ...

    I hooked up with MyBlogLog; and have used it continuously, before it was aquired by Yahoo but since that aquisition all we - the users - have seen is the forced changed to using a Yahoo signin. There have been no improvements or additions to the MBL service - if anything it has stagnated. Myself along with other bloggers who use MBL have asked the same thing - when are we going to see something more than just the avatars in our sidebars and a basically useless addition of Twitter integration. And we're still waiting.

    Now we have Disqus and again it is a service I really like and am banking on being a service that will bring something of value to my blog(s) even though you guys are still in school (finishing finals if I understand correctly) and working hard on your startup but are we looking at yet another company who will take the first hot aquisition offer - potentially leaving the users with yet another stagnating company.

    Or - do you both believe enough in your product that you are in it for the long haul which includes letting your users know what is happening product wise. I realize this might be hard having to juggle a hectic school year with running a startup and having a life in an amongst all of this .. but hey .. you brought the product to the table and I think it is only fair to know what is going to happen with something that a lot of users are investing their time into promoting.

    Like I said given your post the question had to be asked :)
  • Wow, there's a blast from the past. :)

    This was written way back in March (about 2 decades ago in Internet years). We are no longer in school and we are working on Disqus full time. I wrote this back then to think through some thoughts I had floating in my mind. In regards to Disqus, we really see a huge future for what we're doing. Disqus is taking its baby steps right now, I'd say.

    Thanks for reading our old stuff (this post was pre-Disqus) and I appreciate the thoughts. But no, we're not going anywhere and we're not doing anything else.
  • Cool.

    the post came up in my feed reader and I didn't pay much attention to the date stamp (if there was one) but in a way it did give me a chance to ask some questions that had been in the back of my mind.

    and I am glad you are going to be here for the long haul - regardless of how that equates to Internet time LOL :)
  • It could be a good choice for many startups since many products are just some features to add to other products, services
  • This is a comment trying out DisQUS
  • This is an interesting article ! Thanks for sharing.
  • Looking forward to acquisition of the business is rather common among many entrepreneurs. However, if the business can bring in sustainable profits in the long run, i see no reason to sell it.
  • Acquisition is the way to kill off competitors and strengthen the Aquisitioner but hey big windfall to the Acquisitionee
  • Hanging on and grow your business is really tough. There are countless new startups doing a wanabe all the times.
  • When I am doing media buys, the ONLY business model is aquisiton. You have to stand your ground and make sure you dont sell yourself short.
  • Disqus like pencil in right hands - it create history !
  • For my point of view, If i am having a retail outlet which is all managed by me, acquisition will not come into the picture as the market might be established and its my hard work.

    However, if its an online business, whereby the market value is of uncertainty, acquisition might be a better move as this will bring security over what you have built.
  • Depends on much my company worth for the acquisition. Calculations of future paths and prediction of market value is necessary when it comes to being acquired. However, whichever steps that you take are of vagueness. Nobody knows the future.
  • One wrong move will bring regrets for life. Lives are unpredictable. You will never know what will happen in the future. I am an emotional person and therefore when it comes to acquisition, I will always see the feelings that are tied to it
  • I love using Disqus, thanks for your post!
  • isnt' forming a coy just for aquisition questionable?
  • I think that it has alot to do with who takes over the company, Microsoft getting Digg would make it crap however Google Getting Digg would make it the Cream of the Cream
  • Matter of opinion but google is not doing anything great and have you looked at what Microsoft brought about with the live website. Some seriously good stuff if you have not been following that.
  • i personally dont think that aquisition is a right way to kill their competitiors and i hate it as a aqiositionee.. at most of the cases and i love using disqus
    Medical Website Design
  • What a useful post here. Very informative for me..TQ friends...
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