Where you make the money is on the buy

Talent vs. Technology, the two types of acquisitions

There are more and more stories lately of talent acquisitions rather than solely technology purchases. Although they are both purchases, the former is buying based on what they can do, and the later is buying on what they do… do.   A wise developer once told me you make your money on the buy, not on the sale.

The same is true for talent acquisitions. Much like the Google’s purchase of Australian Where 2 Technologies for the Rasmussen brother’s who are responsible for Google Maps & Google Wave (Lars is now at Facebook) or as seen with the majority of Facebook’s latest acquisitions are all seen as talent plays.

The “WIN” happens at the buy, not implementation. Facebook and Google, among many other’s are struggling to find talent right now. As a result, they are buying companies for the founders who have talent and giving them a contractual obligation to stay. It is much like a signing bonus, where the purchase of the company (investors included) are part of the bonus.

Post a Comment

Your email is never published nor shared. Required fields are marked *