Tuesday, January 31, 2006

Buying Innovation

The truth behind Yahoo's acquisition of Flickr and del.icio.us:
The truth is, I think, that Yahoo bought 'Entrepreneurial Spirit'. Ok, these small companies also have some technology, a few members, a little revenue and great PR but that wasn't the main reason to buy them. The truth is that big companies don't innovate. They can't.
Interesting perspective.

(via Ben Poole and Volker Weber)

1 comment:

Brian said...

That's a great story and so true. Unfortunately, all too often the big company sucks all of the innovation out of the smaller company and then spits it out. Hopefully this won't happen with Flickr and del.ico.us.