We often ignore the simple rules of a pond – the big fish will try to devour the small ones. And in the world of technology, the big companies will try to (in the garb of supporting and mentoring) acquire new ventures. But experience tells us, that not all of these mergers are a success.
Be it Yahoo!, Google or Skype, all of them have made various startup acquisitions, most of which failed to take off. Yahoo’s unfortunate tryst with Flickr, Delicious, MyBlogLog and many others has given disastrous results. Even Google’s purchase of Dodgeball and Blogger did not make the grade. Since the list of failures is quite long, it is imperative we examine the causes.