Glossary · Outcomes
Acqui-hire
When a company buys another mostly to hire its team — the product may shut down. Founders and investors may get small payouts; engineers often get retention packages.
Related: Exit · Venture capital (VC) · Stock options
A bit more nuance▾
- Outcomes for common shareholders can be weak if the deal price is tiny.
- Still beats immediate shutdown for some teams.
Go deeper▾
Discussion questions▾
- When is acqui-hire a win vs a face-saving loss?
- What would you negotiate for your team in an acqui-hire?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.