Quantum Time

2012 is for Buying Startups.

Great post by Boonsri Dickinson on how Facebook’s org structure sets it up for more acquisitions. After I posted my thoughts on recruiting and startups getting bought in 2012, my friend Oli teased me saying essentially, “That was 2011.” And he’s right. There were a staggering number of startups bought last year.

My argument is two-fold:

1) I think the number of M&As in the startup space will increase given the companies are now loaded with publicly traded stock which acts like cash in these deals. Second market activity has allowed Facebook and Twitter to make accusitions pre-IPO, but the buying sprees will increase in 2012 because…

2) More startups will be selling. The old cliche is you don’t want to sell, you want to get bought. Sounds the same but there’s a big distinction and it usually comes down to the price you’ll get for your startup. I sold my company. I wish I was bought instead.

Cheers,

Hong