I can think of many reasons a large company might buy a smaller one, only to kill them. For example:
- Perhaps it was a smaller competitor causing the larger company a headache
- Perhaps the smaller had created something that the larger was struggling to build but was failing and needed more time
- Perhaps the larger wanted to hire a particular person in the smaller
- Perhaps the larger was genuinely interested (at least a team at the larger was) and, after acquisition, the larger just couldn’t be bothered.
Bring out your dead
Indeed, I’ve seen permutations of all of these. Here are some that stick out:
Twango – In 2006, Nokia wanted to be a media company. While it had the time and chops to create a photo service of their own (and the opportunity to bet on Flickr), they spent many months wooing an obscure Seattle-based photo sharing company. When the service was finally purchased, Nokia’s touch of death* worked as the service never really was updated or properly integrated into the Nokia portfolio, and, things were so exciting, I don’t recall any of the original employees sticking around past 6 months. The service languished in neglect for a long time before it was finally shot.
Dopplr and Plazes – Two well-loved darlings of the digerati. Plazes might have been an acquisition to get good mappers in Berlin, where the city, due to the acquisition of Gate5 (which I think also had connections to Plazes), was becoming (and still is) the heart of Nokia location services. Dopplr, for me, was an acquisition to hire one of the co-founders. The value of the service and other employees and founders were incidental, I feel, and relocated to Berlin and disappeared. Both services had a modest, but influential and engaged user base. They were leaders in how location and social networking could be. But neither was updated after acquisition and soon were both closed down.
Jaiku – OK, so I’m not pooping on Nokia here. Jaiku (which Nokia indeed turned down) was quite disruptive with their Twitter competitor. It could have been a contender. And Google must have seen that. But Google did nothing with it, didn’t integrate it into anything, and let it die of neglect. It could be they wanted the co-founders. But it wasn’t clear that, once at Google, they were able to make an impact. Of course, neither are at Google any more.
OK, so these four were ones that I knew the co-founders. The next one, and the main reason for this rant, I wish I could ask what the founders were thinking.
Oh, the places you’ll go!
Moves – Moves is hands-down the best tracking app I have used. It quietly watches your GPS tack and gives you a nice view of where you’ve been, let’s you name things, and provides some basic stats. The key to me was the constant GPS tracking, so I don’t have to think. I browse the data often, reviewing the history of what I’ve done, trails I’ve walked, and streets I’ve run. And it knows when I’m biking, cycling, walking, or in a vehicle. There is nothing out there like it.
Sure, it’s had its hiccups as Apple tweaks iOS, M7 came online, and so forth.
Earlier this year, for some reason, it was acquired by Facebook. I have no idea why. The thought is that Facebook wants to get into trackers (who doesn’t?) and this was a good way in.
BUT, there has been no integration into Facebook properties (except the privacy policy), there has been no mention or promotion of it since, and WORSE there have been no updates.
Painfully, the app is failing more often since iOS8 came out. All the support lines are dead, even the founders don’t respond over Twitter.
I think it’s dead, Jim.
What’s a boy to do?
I’ve been trying to find a replacement for Moves, shook my fist at the big “f” mutely staring at me, tried different channels to find a human behind the app.
No luck.
Yet again, larger buys smaller and kills it.
And they don’t give a hoot about us.
True, not all acquisitions are so wasteful, but it sure hurts when it’s a favorite.
*OK, so I have no idea how Nokia found Twango. It really wasn’t a good service (I never used it beyond for work). Nokia could have done better. So perhaps that contributed to it’s decline. Nonehteless, Nokia seemed to have a touch of death with their acquisitions. I can’t recall many successful acquisitions during this period except NavTeq, an acquisition that ended saving the company, though not the mobile part. And NavTeq probably survived because they were independent for so long.
