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The Real Cost of Acquisitions: the Zimbra Story

30 pointsby dragonquestover 15 years ago

3 comments

sh1mmerover 15 years ago
Depends what Yahoo! bought Zimbra for, really.<p>You may have noticed that Yahoo! has quite a big internal mail platform... perhaps they actually wanted the technology expertise and the people more than the enterprise business. Perhaps they already extracted that value.<p>Disclaimer: I work for Y! but not for mail and I have no insight into mail at all. Also these opinions are my own and not Y!'s.
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netspover 15 years ago
From a certain perspective, the startup complex is and extremely bizarre value creation and destruction machine. You have acquisitions like this funding (in the sense that founders and investors do this in order to achieve an acquisition like this) scores of startups who are creating real value come into being. The "successful" ones that get acquired are actually destroyed. Maybe there is some opaque value (expertise acquisition) passed to the buyer, but overall the value seems to be destroyed.<p>The side effect though is value created via all the other startups that get founded.
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rishiover 15 years ago
Does anyone know how Zoho scaled to 300 people and 20+ products with no outside investment?