A Note on the Antitrust of Sustaining Innovation through 'Entreprenurial Handoffs'
4 Pages Posted: 22 Aug 2012
Date Written: August 2012
Mergers in the startup world, like a Google/Youtube, Amazon/Zappos, or Facebook/Instagram, are often about sustaining the innovation so the acquired company can disrupt the legacy industry. The method of sustaining the innovation is the handoff from innovative founders who may be good at the innovation involved in changing user behavior to a bigger, but still innovative company that can sustain the innovation by applying a business model to it.
Antitrust should recognize the "entreprenurial handoff" when examining acquisitions of certain startups.
Keywords: Antitrust, Innovation, Silicon Valley, Venture Capital, Google, Facebook, Yahoo, Amazon, Apple
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