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driscoll42 2 days ago

When Roomba thought it was about to be acquired by Amazon, it did lay off 10% of its staff - https://www.therobotreport.com/irobot-laying-off-10-of-staff.... and after the deal was canceled, it was disclosed that they had reduced R&D and focused on margin improvements, and there was some brain drain as people left Roomba as it was in a 18 month limbo - https://www.verdict.co.uk/irobot-to-cut-over-a-third-of-its-.... And of course all this self inflicted pain only hurt them doubly as the Amazon deal fell through. If they had acted as if they weren't going to be acquired they might be fine, but they tried to maximize the shareholder revenue.

rwmj 2 days ago | parent | next [-]

I wonder if Amazon did that deliberately.

Back in the day (about 2002) I was working at an education software company which was trying to get itself acquired by Microsoft. MSFT came in and told us our software didn't conform to all these "standards" in the educational software space. Standards which, coincidentally, Microsoft themselves had written. These pseudo-standards did absolutely nothing to help our customers, and were pure bureaucracy and very very complicated to implement.

I'd recently read Charles Ferguson's book about how his company was acquired by MSFT, and recognized this part of their standard operating procedure, along with extreme and invasive due diligence where they spend a lot of time working out if you're stupid/pliable enough to jump through these hoops while buying themselves time to work out if they can clone your product. I tried to warn management (yes, really - even bought them copies of the book) but naturally no one would listen, and reading a book was too much like hard work. At some point MSFT simply ceased returning management's calls, and rolled out a similar product a while later.

The company imploded not long after, not for this reason in particular, but it was part of a general pattern of incompetence and mismanagement.

pseudohadamard 2 days ago | parent [-]

Friend of mine was in a company that was going to be acquired by $bigcompany. They strung them along and strung the along until their VC funding was exhausted, then picked up the remains for a song. Much cheaper than actually buying them up.

HPsquared 2 days ago | parent | prev [-]

Poor risk management!