The ‘Acqui-Hire’ Trend

“Acqui-hiring” is basically when a company buys a start-up company to claim its talent. This “acqui-hiring” trend is becoming more prominent as large companies such as Yahoo and Google bought out several start-ups. The advantage of this action is that large companies can acquire talent and ideas while also eliminating potential future competition. The downside is that oftentimes companies lose a large amount of money from this purchase because the acquisitions are not contributing nearly enough revenue to cover the acquisition costs. I think in the short-term this strategy will cause losses, but if the company is large such as Google, it can survive the losses  and make use of the talent they acquired. This way in the long run, the company would be at an advantage because there would be less competition and the acquired talent would be developed. However I think it is important to establish an organizational culture in order to develop the talent. The company has to integrate the new acquisition into the existing culture. A good way to do this is by making the acquisitions work with the rest of the company instead of allowing them to work among themselves. This way they will diffuse into the rest of the company and contribute to the company’s success.

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