Yet the history of small Internet companies being snapped up by large ones isn’t pretty. Just in the past few months, eBay has had to unload both StumbleUpon (the Web recommendations engine it bought in 2007 for $75 million) as well as the Internet-phone service Skype (purchased in 2005 for $3.1 billion), each for a loss. Yahoo is looking to rid itself of several properties, including Zimbra, the email company it snapped up in 2007 for $350 million. FeedBurner, Jaiku, and Dodgeball are only a few of the startups languishing in obscurity under the Googleplex.
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Peter Mehit is co-founder and Managing Partner of Custom Business Planning and Solutions, a business consulting firm that provides problem solving, planning and process help. He has worked from private equity to the Fortune 100 at all stages.
He can be reached at pmehit@wbpllc.com or at 800-741-8444.
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