Creating & Growing Great Tech Companies: When to Buy, Build & Partner - Based on Experience at Yahoo and Overture
This presentation is meant for those individuals who want to be successful leaders in the technology space, whether they create a company from the ground up or want to be senior management in the world's largest technology companies.
There are three ways to grow your business or expand into new businesses: (1) Buy existing companies, (2) build improvements to your existing products and services or build new products and services or (3) partner with others in the industry. Engineers tend to want to build, M&A folks lean towards buying and deal people push for strategic partnerships. Regardless of your background, if you want to be effective, you must know the pros and cons of each.
Choosing the wrong direction can have dire consequences, such as shutting you out of the market or creating disastrous integration nightmares. This presentation goes through the reasons to pick one approach over the others with a special focus on strategic partnerships, as that is Mr. Stackel's specialty. Mr. Stackel will discuss real life examples in Big Data and small start-ups as well as how certain large corporations, such as Google, Microsoft and Yahoo, have used these methods to expand their businesses.
Having great ideas is just table stakes to get you into the discussion. To build transformational companies, it is all about execution and obtaining user adoption, which is very, very difficult. Depending on which approach you apply, you will have very different execution and adoption risks and advantages.
About Dean Stackel
Mr. Stackel was part of the senior management team at GoTo.com (which later changed its name to Overture Services), the transformational company that created paid search, Google's primary business model. After Yahoo purchased Overture in 2003, Mr. Stackel became the Senior Vice President of Strategic Partnerships at Yahoo. In this role, he managed three of Yahoo's largest and most profitable business development teams. One team handled Yahoo's largest strategic partnerships, another team handled Yahoo's search deals and the last team worked on Yahoo's distribution deals. In addition to managing these teams, Mr. Stackel has personally negotiated billions of dollars in transactions, including deals with Google, Facebook, Adobe, Microsoft, Yahoo, Comcast, eBay, Amazon, and Ask. Mr. Stackel now runs his own consulting company which assists large technology companies in very complex deal negotiations. He also invests in and helps smaller technology companies in all aspects of forming and growing their business. Prior to Mr. Stackel's work at GoTo.com, he was a partner at the law firm Buchalter, Nemer, Fields and Younger.