Should I Ever Care When One Tech Company Buys Another?
It seems like every day I hear about some tech company buying another. Should I ever care when this happens? Can it possibly have an effect on me?
It's true, without fail we hear about buyouts pretty much every day. In the last couple weeks we've seen Facebook buy Whatsapp, Apple buy Burstly, Spotify buy Echo Nest, and Flipboard buy Zite. Sometimes these acquisitions are about specific technology. Other times it's about software, and sometimes it's just about hiring talented people. Which is to say, it's pretty tough to know when it's worth caring about an acquisition and when it's not. To get a better understanding, let's take a look at a few older acquisitions to see how buyouts tend to affect users. Hopefully that'll help you decide which ones to care about.
Example 1: Google Acquires Sparrow, Development of Software Stops
Probably the saddest day for Apple users was the day Google acquired Sparrow. Sparrow has long been our pick for the best email app on Mac
Since the acquisition, we've started to see the Sparrow's influence on the official Gmail mobile apps. The way the app's drawers work, how labels works, and a few other things feel inspired by Sparrow. This is nice for users of the Gmail app, but Sparrow was great because it worked with all kinds of email servers. Likewise, the Sparrow desktop app was the best desktop email app and there's pretty much no chance Google will use that technology.
In the case of Sparrow, the end result it pretty clear: Google gets some talented people to work for them, users lose support for a fantastic app. Typically speaking, a company buying another for talent or a small bit of technology is the most common acquisition. Other examples include Apple buying Lala
Example 2: Dropbox Acquires Mailbox, Development Continues
The flip side of a scenario like Google acquiring Mailbox is when a company buys out another and just lets them continue on their merry way. This is what happened when Dropbox acquired iOS email app Mailbox.
Since Dropbox acquired Sparrow, they've continued development of the app, including adding support for extra mail servers and iPad support. In fact, in a blog post right after the acquisition, Mailbox makes it clear they'll continue working on the app just as they always have. Of course, this could change at any moment, but by all appearances it seems like Dropbox lets Mailbox do as they wish.
Example 3: Radionomy Buys Winamp to Keep It Alive
Late last year, Winamp, one of the best music players on Windows,
In this case, Winamp was officially dead when Radionomy purchased it and brought it back to life. As of right now, it looks like Radionomy's only plan is to continue Winamp development and add integration with its own streaming radio services. Otherwise, it's business as usual for Winamp users. This was a similar move to when LastPass acquired Xmarks
Example 4: Google Buys Waze, Integrates Awesome Features Into Its Apps
Aside from when a company allows software to just continue working as it always has, the other best case scenario is when good software integrates features from other good software. This seems the case with Google's acquisition of GPS app Waze
The interesting thing about Google and Waze is that at the moment, both still exist and are borrowing features from each other. This is nice for users in every respect. If you like Waze, you get better Google-powered search results, Google Street View, and Google's satellite view. If you're a Google Maps user, you get Waze's real time accident reports, construction information, road closures, and more
Google's acquisition of Waze is a pretty rare instance of a true symbiotic relationship that appears to benefit everyone. Google gets Waze's technology that tracks traffic in real time, and Waze users get Google's abundance of data.
When It's Worth Caring
Oftentimes it's pretty obvious why a company would buy another. In the case of Spotify buying Echo Nest, it's clear that Spotify wants to improve its music recommendation engine. The downside of that is that other services that rely on Echo Nest will likely get blocked out, which is too bad because Echo Nest is smart software. In other cases, things aren't so clear. In 2012, Facebook bought Instagram, and nearly two years later the service is the same. According to Mark Zuckerberg, that's the same basic plan for Whatsapp as well.
Typically speaking, a user's first reaction is to jump ship after an acquisition. In some cases this is