Sunday, March 2, 2014

Acquihires - Apple acquires someone's startup to extend own team




Apples's M&A strategy is different from the strategy of other internet gigants like Google, Microsoft or Facebook.

Timothy D. Cook, the company’s chief executive, has said in the past that Apple would have no problem paying billions for another company if it would help Apple make more high-quality products.

And that is exactly what they do. The very specialized companies get aquired by Apple if they can bring the need technology for the better products in the future.

In the most of the cases there are essentially tiny acquisitions where Apple buys someone's startup in order to get that person to work for them.

It seems to be a better strategy than so called big deals. The history of the tech industry is littered with big deals that turned out poorly. As example we could take the example from the year 2010 as Hewlett-Packard bought Palm. Or other example from the year 2012 as Google bought Motorola Mobility.

A lot of the tech acquisitions, in my opinion, have gone way off the tracks...

Apple bought the one-man company SnappyLabs this year and made the founder and electrical engineer Mr. Papandriopoulos a software engineer at Apple.The goal is an app development to make the iPhone’s camera take high-resolution photos at a faster frame rate.

But also other deals are made in an effort to quickly blend new technology into existing Apple products.

The acqui-hiring or a talent acquisition is the process of acquiring a company to recruit its employees, without necessarily showing an interest in its products and services (or their continued operation). Sometimes also called "being acqhired".

It is a new dimension of M&A and definitely an interesting one with a bright future!

Some more sources:
For Hints at Apple’s Plans, Read Its Shopping List
For Buyers of Web Start-Ups, Quest to Corral Young Talent