zlacker

>>swyx+(OP)
I need someone to convince me this isn't one of the biggest waste of money on an acquisition. If OpenAI can't build an official IDE for less than 3 Billion then what are they even doing? Windsurf can't have that high of a userbase that you feel the need to pay for it.

>>ujkhsj+O41
We don’t know how OpenAI is paying. A lot of comments seem to be assuming this is an all-cash deal. We have no evidence for that.

>>JumpCr+Mh1
These deals are mostly in stock, not cash. $3b cash is not something most companies can afford to part with, and additionally, making deals that are stock-heavy creates an incentive for the leadership of the acquired company to keep working towards the general interest of OAI, and not instantly retire.

>>rchaud+BV1
> These deals are mostly in stock, not cash

How are you defining “these deals”? Most acquisitions of startup by larger companies in America over the last decade, at least, have been all cash.

>>JumpCr+I32
I'd define them as a large company acquiring a private startup. Slack >> Salesforce was a cash-and-stock deal. Postmaters >> Uber, all stock.

In cases where the company being acquired is already publicly traded, those deals would have to be all cash as their shareholders would need to be bought out. IBM paid cash for Hashicorp, and Doordash will acquire Deliveroo in cash.