Why Most Startup Acquisitions Fail—and Always Will

As 37signals noted in a recent blog post, Yahoo! has a pretty miserable track record when it comes to startup acquisitions, a roll call of the doomed and soon-to-be forgotten that includes Flickr, Delicious, MyBlogLog, and several others that may or may not be trapped in "sunset" mode. It's not just Yahoo, of course: Google has also made a series of startup acquisitions that went nowhere, including the purchase of Dodgeball—which languished until founder Dennis Crowley left to create Foursquare—and the acquisition of Blogger, which also withered on the vine for the most part after the company bought it. The reality is that most of these big startup acquisitions fail, and they likely always will.

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