Many have been commenting on the proposed Microsoft/Yahoo merger, wondering what impact it will have (assuming it goes ahead) on the valley M&A scene. Most are saying the impact will be negative given the large investments that Yahoo seems to make in M&A activity.
Marc Andreessen however disagrees, for various reasons;
- Yahoo, he says, hasn’t actually been that active an acquirer of startups
- There are lots of other companies doing M&A work
- Core media businesses will increasingly see M&As as their saviour
- New M&A players enter the scene regularly
- How many startups have acquisition as their core focus (and if they do it’s risky)
- The couple of years the Microhoo merger will take to sort out will let startups scale a little further and potentially make greater returns
It’s a great analysis, read the full article if you have time.