Start-ups, incumbents, and the effects of takeover competition

• Published in: Journal of business research Vol. 69; no. 12; pp. 5925 - 5933
• Main Authors: Becker, Jan U., Clement, Michel, Nöth, Markus
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.12.2016; Elsevier Sequoia S.A
• Subjects: Acquisitions & mergers; Applied decision analysis; Bidding behavior; Bids; Competitive strategy; Experiments; Revenue; Social networks; Stakeholders; Startups; Studies; Uncertainty; Bidding behavior; Competitive strategy; Applied decision analysis; Experiments
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/j.jbusres.2016.05.005

Recent acquisitions involving Tumblr and Instagram have demonstrated that the takeover of an unlisted start-up company can offer enormous financial benefits to its (former) stakeholders. Considering the multimillion-dollar amounts paid for start-ups with no existing and highly uncertain future reven...