Starts-ups are mushrooming like hell in the United States, and their ultimate dreams remains to get acquired by any giant like Microsoft, Google or Yahoo. Now with the deal between Microsoft and Yahoo is set to be sealed, these start-ups are in quandary as what would be their future, because Microsoft won’t shag-off more billions after acquiring Yahoo for a massive amount, and Google? well you cannot tell about them.
Startups think that they would be squashed by Microsoft like a bug. Scott Rafer, the former chief executive of MyBlogLog, a start-up acquired by Yahoo!, says that the YahooSoft deal means the two companies will be bogged down for months while his new firm, called Lookery, continues to innovate. “We love this kind of stuff,” he says. “The people who could actually do us some damage are going from slow to slower.” Lookery, an advertising network for ads that run on Facebook applications, is likely to find itself in direct competition with YahooSoft soon; Facebook struck a deal in August 2006 to place Microsoft ads on the site. Microsoft’s latest deal, says Rafer, offers him a much-needed head start. “We need to get big enough so that they can’t just squash us like a bug,” says Rafer. “The more time they spend worrying about which division gets merged with which division, the more time we have to grow.”