From Acquisition to Assimilation: Demystifying Big Tech’s Takeovers

Have you ever questioned the motives of big tech companies when they acquire successful startups?

I found myself pondering over this intriguing topic after publishing an article titled “Killed by Microsoft” (available at https://rozentals.medium.com/killed-by-microsoft-cb2bd9d36670), which ignited intense discussions.

While it may appear that big tech giants have malicious intentions, it’s time to delve deeper. In this post, we will unravel the real reasons behind the acquisition strategies of big tech companies and shed light on what happens to startups once they are acquired.

The Motivations Behind Acquisitions

When companies like Microsoft, Amazon, Apple and Google acquire successful startups, their intentions are not necessarily to “kill” them. In fact, these acquisitions are driven by various motivations that we will explore:

1. Talent Acquisition

Startups often house a pool of talented and innovative individuals. Larger companies seek to bring this workforce onboard to inject fresh perspectives into their own projects and foster a culture of innovation within their organizations. Acquiring startups grants access to skilled employees who can drive growth and…