Comment on How the Digg team was acquihiredComments−toohotatopic6yWhat's the leverage the old company has over its engineers when negotiating an acquihire? Why does the new company not approach the lead engineer and the selected employees directly?−marcinzm6yWhy does the new company not approach the lead engineer and the selected employees directly?I'm guessing it's because tech is a small-ish world and no acquiring company wants to burn bridges (with the VCs) by doing that.−rbanffy6yNon-competes, probably, are the easy way. Accusing the potential acquirer of acting in bad faith also happens.Also, a loyal and cohesive team can do the "we go together or we don't go" move.−toohotatopic6yI am not fully convinced.That cohesive team, why would it make money for the old company and its investors? That signing bonus can be split entirely among themselves.Non-competes are not allowed in California. And in any other location, the team can wait it out because the company most likely ceases existing.
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What's the leverage the old company has over its engineers when negotiating an acquihire? Why does the new company not approach the lead engineer and the selected employees directly?
I'm guessing it's because tech is a small-ish world and no acquiring company wants to burn bridges (with the VCs) by doing that.
Non-competes, probably, are the easy way. Accusing the potential acquirer of acting in bad faith also happens.
Also, a loyal and cohesive team can do the "we go together or we don't go" move.
I am not fully convinced.
That cohesive team, why would it make money for the old company and its investors? That signing bonus can be split entirely among themselves.
Non-competes are not allowed in California. And in any other location, the team can wait it out because the company most likely ceases existing.