{"id":17481,"date":"2017-03-22T15:57:11","date_gmt":"2017-03-22T19:57:11","guid":{"rendered":"http:\/\/mjtsai.com\/blog\/?p=17481"},"modified":"2019-02-11T23:08:08","modified_gmt":"2019-02-12T04:08:08","slug":"why-large-companies-acquire-small-companies","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2017\/03\/22\/why-large-companies-acquire-small-companies\/","title":{"rendered":"Why Large Companies Acquire Small Companies"},"content":{"rendered":"<p><a href=\"https:\/\/blog.asmartbear.com\/small-acquisitions.html\">Jason Cohen<\/a>:<\/p>\n<blockquote cite=\"https:\/\/blog.asmartbear.com\/small-acquisitions.html\"><p>Large acquirers don&rsquo;t care about small-company financials because mathematically those won&rsquo;t affect the growth or value of the acquirer.<\/p><p>[&#8230;]<\/p><p>Rather, buyer behavior is rooted in their strategy &mdash; a combination of product thesis, their theory of their market&rsquo;s evolution, how they need to position for customers and against competitors, their long-term brand development, geographic expansion plans, and so on.<\/p><p>[&#8230;]<\/p><p>Pundits couldn&rsquo;t agree how to analyze the sale of Instagram to Facebook. It was said that Facebook drastically overpaid (a billion dollars for a company with fanatical users but zero revenue) but also that that <a href=\"https:\/\/blog.asmartbear.com\/relativism.html\">Instagram was stupid to sell so early<\/a> (because after more &ldquo;inevitable&rdquo; growth it would be worth much more, and would &ldquo;inevitably&rdquo; be bought or go public at that larger valuation).<\/p><\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Jason Cohen: Large acquirers don&rsquo;t care about small-company financials because mathematically those won&rsquo;t affect the growth or value of the acquirer.[&#8230;]Rather, buyer behavior is rooted in their strategy &mdash; a combination of product thesis, their theory of their market&rsquo;s evolution, how they need to position for customers and against competitors, their long-term brand development, geographic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2019-02-12T04:08:10Z","apple_news_api_id":"66c1fff1-50ae-430e-8107-12575a2cb638","apple_news_api_modified_at":"2019-02-12T04:08:11Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AZsH_8VCuQw6BBxJXWiy2OA","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[66,101,25,1286,1382,1176,1363],"class_list":["post-17481","post","type-post","status-publish","format-standard","hentry","category-technology","tag-acquisition","tag-business","tag-facebook","tag-instagram","tag-snapchat","tag-trello","tag-whatsapp"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/17481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=17481"}],"version-history":[{"count":1,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/17481\/revisions"}],"predecessor-version":[{"id":17482,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/17481\/revisions\/17482"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=17481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=17481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=17481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}