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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.