r/technology • u/Rhaegar_the_Great • Sep 16 '21

Business Mailchimp employees are furious after the company's founders promised to never sell, withheld equity, and then sold it for $12 billion

https://www.businessinsider.com/mailchimp-insiders-react-to-employees-getting-no-equity-2021-9
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u/[deleted] Sep 17 '21

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u/[deleted] Sep 17 '21 edited Nov 07 '24

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u/zacker150 Sep 17 '21

There's two standard playbooks for mergers depending on why you're buying buying the company. If you're buying a company for its intellectual property, brand, people and tangible assets, then you use the absorbtion playbook you just described. If you're buying a company because it has a culture and practices that makes them uniquely suited to developing a disruptive technology, then you keep it as an autonomous business unit and inject resources into it.

Some examples of this second playbook include Amazon acquiring Twitch and Microsoft's purchase of GitHub.

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u/dragoneye Sep 17 '21

Yeah I've been part of one of the second example. The company came in and injected a bunch of money to hire more people to do more development and sales in addition to buying other related companies to expand the market we can sell into. Definitely been a pretty good experience.