Avid watchers of K-Drama “Start Up” must have heard about the term “acqhire”. The male lead in the drama, Nam Dosan, was trapped in a false acquisition, to which Han Jipyung calls as “acqhire”. Learn everything about acqhire, from history to meaning below!
Understanding the meaning and the start of “acqhire”
The start of the coinage dates back to 2005 when a blogger named Rex Hammock first initiated the word “acqhire”. Hammock combined the word “acquire” and “hire” to jab on Google‘s acquisition on a two-manned company, Dodgeball. The acquisition, according to Hammock, sounds more like Google was simply hiring Dodgeball’s human capital. The term soon became a buzzword around the tech ecosystem.
Acqhire and Acquisition, how is it different?
Start Up Institute pointed out that acqhire simply means talent acquisition. Thus, the company’s main goal is to hire talented employees. They have low to zero interest in the acquired company’s product, services, or technology. They are simply aiming for the human resources of the company they target. Sometimes, big companies implement this strategy to shut off competitors and turn them into allies. Smaller companies are often the targets for such acts.
It takes a lot of money and power to commence with acqhire. Hence, culprits of acqhires are mostly big-name companies. Several names mentioned by Start Up Institute are Google, Yahoo, Zynga, and Twitter. Companies with power will come up with a deal that looks like they have actual interest with the companies they target. Thus, the offers often come in a huge amount of money and stock. But why do smaller companies accept acqhire offers? To some smaller companies in the verge of collapsing, being “sold” sounds much better than failing, or bankruptcy. That, along with the money offered, are two of the main reasons why aqhire offers are difficult to reject.