SaaS Talk™ with the Metrics Brothers The Windsurf Transaction and the New Reverse Acqui-hires
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Jul 23, 2025 The podcast dives into Google's recent $2.4 billion acquisition of Windsurf's top talent, shedding light on the innovative reverse acqui-hire model. The hosts dissect the evolution of acquisition strategies in tech, contrasting traditional models with this new approach. They explore the complexities of failed deals, like the $3 billion attempt by OpenAI, and discuss the implications for employees and the broader startup ecosystem. The episode also touches on the financial dynamics of talent acquisition and the regulatory landscape affecting AI transactions.
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Windsurf Deal Timeline
- The Windsurf deal involved a $3B acquisition letter of intent by OpenAI that fell through due to Microsoft objections.
- Google later paid $2.4B for key talent and a license, leaving the rest of Windsurf to be bought by Cognition.
Traditional Acquihires Explained
- Traditional acquihires involve buying a company mainly for its people, often yielding limited return for investors.
- The cost per employee typically ranged from $200K to $2M, with proceeds favoring investors and key execs over rank-and-file employees.
New Acquihires Aren't Full Acquisitions
- New acquihires, such as Google's Windsurf deal, do not involve acquiring the entire company.
- Instead, they selectively hire key talent while leaving the original company and other employees intact.
