Chapter
The Possibility of False Acquisition Discussions
1:27:54 - 1:32:35 (04:40)
Larger companies could initiate discussions about acquiring smaller ones to gain insight into their internal workings, without actually having the intention to go through with the acquisition. This gives them leverage in negotiations, as well as the chance to validate the price and bleed the company through protracted due diligence negotiations for a better deal, which is not uncommon or ethical in the business world.
Clips
The speaker believes that early stage founders need to be focused on building a successful company, rather than just getting to their next funding round, while later stage founders should prioritize being founder-friendly without hurting their company's stability.
1:27:54 - 1:29:29 (01:34)
Summary
The speaker believes that early stage founders need to be focused on building a successful company, rather than just getting to their next funding round, while later stage founders should prioritize being founder-friendly without hurting their company's stability.
ChapterThe Possibility of False Acquisition Discussions
EpisodeEp 36: Alexis Ohanian on Y Combinator, Getting Punched, and Picking Winners
PodcastThe Tim Ferriss Show
Larger companies may use acquisition talks with smaller companies as a way to investigate and validate the smaller company's worth and leverage their offer without any intention of actually going through with the acquisition.
1:29:29 - 1:32:35 (03:06)
Summary
Larger companies may use acquisition talks with smaller companies as a way to investigate and validate the smaller company's worth and leverage their offer without any intention of actually going through with the acquisition.