In a business there are three basic ways to expand your market, technology, product line, etc. Develop it "in house"/sub-contract the work, form a strategic alliance or buy what you need. In weighing such a decision a company must decide which will be the most expedient method to achieve their goal. An even bigger question is will the market wait or move on to the competition. Additionally while a company may decide to "grow it in house" they run the risk of falling even further behind as the competition continues to hone their product. Then there is the process of trial and error, getting the right people, contracts with vendors, customers, etc.
IMHO CyberCash made the absolute correct move because in addition to all other items time is compressed in the technology world (A year becomes a month, a month becomes a week, etc, etc.) Things are moving way too fast to get caught in a temporary vacuum.
Now if CyberCash management is really smart they will NOT stick their fingers into the pie and try to mold the company to meet their perceptions. I believe they should, and will, allow the two companies to immediately share all the necessary basics to help ensure a quick update to the product. At the same time they should
allow the cultures of the two companies to blend with time. Unlike some other acquisitions this one does not appear to be a major shake up scenario.
T.R. |
