This was avoidable...

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This was avoidable... // Roundtable

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Post by BIF // May 21, 2009, 9:45am

Total Posts: 1
Amongst all the sadness, I am angry. I am angry because this might have been avoided, simply by avoiding the damned merger in the first place.

Mergers are RARELY good. I knew this was bound to happen when I first heard about the buyout. It's rarely studied, but when it is, we learn these things:

A. In more than 61% of mergers, the merged entity actually loses value (measured a year after the merger). In other words, the single merged entity is worth less than the two (or more) parts were worth "pre merger."

B. In most cases, the "mergee" (smaller) ends up going away, cannibalized by the larger entity. The products and services of the smaller, more nimble firm are often terminated, as are most of the employees. Other employees just lose whatever health, retirement, or other work benefits they had, and they end up working a lot of unpaid overtime. Until the health problems begin to set in.

C. In most cases, innovation from the smaller firm is not carried on in the final "merged firm." Success and progress just plain stops!

Roman, if you EVER start up another graphics software firm (or any software firm, for that matter), please make it part of your mission statement that you will NEVER sell out to a larger firm, whether it's Microsoft, Apple, Intel, Cisco, the Federal Government, or even God himself!

Being acquired or "a merging of equals," or whatever management BS term you want to use, this never ends well. And a lot of people; employees, customers, families, or (as you can see here, FRIENDS), they all get shafted in the end.

At least see what you can do about releasing a final patch. Or better yet, Talk to the lawyers about publishing the source code, so that there will be a chance for innovation to continue...

Sorry to dump, but I'm madder than I am sad. is a privately held community resource website dedicated to Active Worlds.
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