In the past decade we have seen a number of entrepreneurship ideas surface. We have seen young tech enthusiasts struggle hard to make a mark with their startups right from looking for startup loans to coming up with pricing strategies to complete finance management. In a few years we have seen some of these startups getting acquired by the giants that rule the world.
When they were acquired, these enterprises were in the news, and everyone commended the brilliant startup business ideas of the founders. Indeed, being acquired by Google, Yahoo, and other such companies is not a joke. However, not all these acquired companies are living a grand life right now. Some of them are still going strong while others have become losers.
Let’s take a look at some of the biggest acquires and what their standing is right now:
It was almost a decade ago in 2005 when Google recognized this less than 2-year-old startup and decided to acquire it. They acquired it for approximately $50 million and we all know that it is valued much more today with almost 80% of the world’s smartphones running on Android as of 2013. The two co-founders of Android are now working with Google as executives. Rich Miner is in Google Ventures while Andy Rubin is busy with robotics.
We are sure not many of you even know about this but when it was acquired in 1999, it was considered to be one of the best entrepreneurship ideas. No wonder why Yahoo paid a whopping $3.6 billion for it! This was a website hosting platform that didn’t do all that well. Its popularity started decreasing steeply and the number of users dwindled. Finally, in 2009, Yahoo decided to shut it down. A big failure, this was!
AOL purchased Bebo, a social networking site, in 2008 for $850 million. It was probably aiming to compete with Facebook because as of 2008, it had 40 million active users. However, within just 2 years, the site had to be closed because it barely had any users at all! As per latest news, the initial co-founders of Bebo repurchased their startup last year for a mere $1 million.
Google bought Dodgeball in 2005. This was a social network based on location, much like the popular Foursquare. Keep in mind that Dodgeball came into existence before Foursquare did. However, Google had to shut it down in 2009 when the co-founder of Dodgeball said goodbye to Google and came up with Foursquare. We are all familiar with Foursquare today.
The bottom line here is that though these seemed like excellent entrepreneurship ideas to start off with, they either had stiff competition to face upon being acquired or they just failed miserably. In this list you can see that only Android has shown growth. Facebook, Google, Microsoft, and Yahoo have acquired quite a few startups in the recent past. Let’s wait and watch how they do in the coming years.
Tech giants constantly look to acquire promising startups and turn them into highly profitable enterprises. Sometimes it works and sometimes it doesn’t. Keeping a track will enable you to see just how volatile the tech world is.