In the industry that is information technology it’s not uncommon at all to see large and established companies such as Microsoft and Google swallow up startups that they see as a potential asset to their overall operations. This “if you can’t beat them, but them” approach is not only beneficial for the buyers who gain what are often times already established products and services, but also gives the purchased startups the ability to leech onto the resource of the larger entity in order to expand at levels they wouldn’t have previously been able to fathom before without big wallets backing them up.
But these acquisitions don’t always stop with small buys. Sometimes it makes sense for businesses to acquire large companies that they see as competition or a threat to their business. Recently Microsoft dropped $8.5 billion to buy VOIP service Skype, and Google earned a bit of publicity earlier this year when they offered $6 billion to purchase Groupon only to be turned down.