Jan 31, 2014

Why does Yahoo! buy a company like Incredible Labs then discontinue its main product?

Yahoo! bought Incredible Labs, which I only know of because of their Donna calendar app, and now they are killing off Donna. Why the heck do companies like Yahoo buy other company’s then destroy the very thing that made them attractive in the first place?

Sometimes it's for the employees, and sometimes it's for the technology, or both. Patents can also be a prime motivation for one company to buy another then discontinue all or some of the products.

To get the talent, primarily, like Google did with Bitspin recently. Sometimes it's to fill a gap in its offerings or to prevent another company from becoming a legitimate competitor or offering a product that is direct competition for the acquiring company’s offerings. 

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