That is how they plan things, at times, says the Wall Street Journal. I came across this article today, and thought I would share it. Even though the article is about the wrong policies of Washington, I found this part more interesting.
I know its not something new, large companies will acquire small ones, or new ones. But, making companies, in order to sell them, well, that’s quite interesting, isn’t it ?
At its best, the cycle is self-perpetuating. Entrepreneurs come up with a new idea, form a team, write a business plan, and then pitch their idea to venture capitalists. If they’re persuaded, the VCs invest, typically through several rounds during which the start-up company must meet performance benchmarks. Should the company succeed, it then makes an initial public offering of stock.
Faced with crushing reporting costs if they go public, new companies are instead selling themselves to big, existing corporations. For the last four years it has seemed that every new business plan in Silicon Valley has ended with the statement “And then we sell to Google.” The venture capital industry is now underwater, paying out less than it is taking in. Small potential shareholders are denied access to future gains. Power is being ever more centralized in big, established companies.
Examples ? We have our very own wordpress, it acquired gravtar, intencedebate and polldaddy.com recently. Guys, what about starting a new blog, making it successful, and selling it to some blog network, or another blogger ? How is that plan ? ( this is also not a new idea, ok ? 
10 comments ↓
Ha ha ha ha Do no evil !!!
you mean, selling this blog ? no re
Much like the serial investor called C Sivasankaran of Sterling group. That fellow is known to enter into newer markets and business and scale it up to a level. After sustaining for some time and acquiring some market share, he sells it to some established company, makes a tidy profit and walks away.
Btw, he used to / currently owns Barista coffee chain too. More about him here http://www.sig.co.in/
Btw, dont forget to let us know when you sell your blog to google and make money
LOL .. thanks for that info Philip …. strange.. isn’t it ?
I don’t have plans to sell this blog to anyone
I will pass this on to my sons and daughters ….. in future, they will be proud to have an ooooold blog
“in future, they will be proud to have an ooooold blog “…
Good luck with that..
thanks
Interesting! I was under an impression that its a matter of necessity rather than a planned approach.
And you can auction your blog. There are more chances of profits there.
auction the blog ?
thanks for the idea lol
Indeed, many startups are founded with the sole aim of getting acquired. Getting a few million dollars ((few hundred in the better cases) for a few years of work is a big enough incentive.
Works best for both the seller and the buyer.
The seller becomes an instant millionaire, and the buyer acquires cutting edge, specialized technology and manages to curtail competition (in some cases). Besides, they say that acquiring companies is a great way of growth for the already established companies.
Yes, acquiring the competitor, will be a great idea
and in some cases, when you buy a small company, that ends the competition … totally…
good point bro
Leave a Comment