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Sold just got acquired by Dropbox and closed their company

101 points| alexeichemenda | 12 years ago |usesold.com | reply

78 comments

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[+] chrisacky|12 years ago|reply
The opening line follows the boilerplate trend of acquisition posts. Being acqui-hired is not something that you should be celebrating with your users... PERIOD. (On a side note, I'm genuinely happy for you all. Getting paid isn't a negative. It's a huge opportunity, but don't patronise your users).

"Yey us. :D We're super excited to announce we got acquired. High-five... too slow... Now go f* yourselves."

It's incredibly condescending to assume that any of your users share your happiness and are apart of this experience...

"We’re really excited..."

You use "we" so many times as if your users are apart of your acqui-hire, yet only mention "you" (your users who made this possible) in the closing statement.

Be honest and graceful, but asking your users for a high five on the way out isn't the way to do it.

PS. I hate posting negative comments. I'm a Brit, and like to be polite all the time....

EDIT: Call me out on this if you think I'm wrong. Other people who have read it think I'm just reading into it way too much. I tend to agree that I'm particular, and it could easily be chalked down to me being overly zealous to criticize another successful acqui-hire. :)

[+] xianshou|12 years ago|reply
Thank you for a refreshing dose of the truth!

When you shut down the product, an acquisition is no good for the users, plain and simple. It may or may not be a personal success, but no matter what, it is the end of the vision that you and your customers shared. They were your supporters, your believers, and the lifeblood of your product, and disguising your celebration as everyone's is an indignity to them.

I sold my company and shut down my product because the right opportunity arrived at the right time. But I didn't frame it as a triumph for them. My words, from the acquisition email: "We’re excited...but it’s always bittersweet when something good comes to an end."

[+] ryan-allen|12 years ago|reply
I have the same sentiments. As a user who relies on a service, it always feels very much a "we just got a huge wad of cash, we care more about this than if you used our serviced and paid for it, we're rich and fuck you if you used our service!".

This pattern of acquire and shut down makes me careful of which services I invest in using. If there is no paid plan I get very nervous. If it is VC backed and free I get nervous. I'd rather support a business and help them stick around and work on their product.

One product I was very upset about was an online collaborative editor that I was gearing up to get our team to use, which was suddenly acquired by Google and shut down as they didn't want any competition to their soon to be realised collaborative editing in Google Docs.

[+] dolphenstein|12 years ago|reply
I had the same feeling when reading this post. It's one thing to spin a positive when acquired for the product and not the people.

When you're about to shutdown a service, this kind of self-congratulation is more like a middle finger to the users. A humbly apologetic post would've been a better goodwill gesture. High five each other in private.

[+] jcampbell1|12 years ago|reply
They don't have "users" in the same way a free blog site has users. I see no reason to be negative in this case.

If your favorite taco stand owner sells out to taco bell, the owner should be free to celebrate. You won't be able to get his tacos in the future, but it is not like he broke some implicit promise to always sell you tacos, nor are the tacos he sold you in the past somehow tainted now.

Shutdowns are only a problem when users make an investment in the platform.

[+] nl|12 years ago|reply
I think you are wrong here.

As I understand it, Sold was a service to help you sell stuff.

Services like this are by their very nature used mostly as a once-off thing - someone wants to sell something they don't want anymore. Once it is sold then the "user" has no relationship with the Sold service.

So now people who are selling things no longer have the opportunity to use the Sold service anymore.

I think it is unfair to criticize people for choosing not to offer a service to new customers anymore.

More generally I think it is even more unfair to criticize people for closing a business that wasn't very successful (because success = profit, and if it was so profitable it wouldn't be sold to be shutdown).

Finally, aquihires are much, MUCH better than most of the alternatives for a failing business. We've all heard stories of users panicking when a service shuts down after someone fails to pay the hosting bills. Aquihires avoid that scenario.

[+] jinushaun|12 years ago|reply
The big difference, of course, is that Sold doesn't have regular users. It's not like Reader shutting down and all your saved articles disappearing into the void. Users who completed a transaction got paid.
[+] paultannenbaum|12 years ago|reply
I received an email from them with the same content before I opened hacker news, and had the same thoughts as you. So no, I dont think your reading into it too much.
[+] _sentient|12 years ago|reply
Companies don't get acquired thoughtlessly, and I'm fairly sure the founders understand the implications for their users.

I'm sure a lot of thought went into this, and one way or another they are going to have to announce their decision. It makes sense that they would approach this from as positive an angle as possible. I mean, what's the alternative? Are you going to announce to your users that your promises will go unfulfilled, and that they can consider themselves shafted henceforth?

Yes, this news is being spun in a positive light, but I think that's both reasonable and expected in these situations.

[+] buro9|12 years ago|reply
Boiler plates:

"You're all very talented and deserve success" - To staff when you are making staff redundant and/or shutting the company.

"We're super excited we got acquired" - When you're shutting down your service and choosing to exit via acqui-hire to save face.

A catalogue of such boilerplates might be quite insightful to the people who are consuming them and at the same time could help startups out who are in dire need of copy for the right occasion.

[+] vvvVVVvvv|12 years ago|reply
I was about to say you'd fit well in Europe, then I saw you are a Brit. My comment still holds, if you see what I mean ;)

It's really something cultural I guess but I can only feel the same way as you do.

[+] itafroma|12 years ago|reply
As someone unfamiliar with Sold, I really appreciated the "What was Sold?" section: I rarely, if ever, see that on shutdown/acquisition placeholder pages and always wished more companies would do that.
[+] RafiqM|12 years ago|reply
Also unfamiliar with it till now, just watched the video and wow... it looked like an awesome service. I wouldn't have been able to use it, as I'm in Ireland, but if selling was that simple it could really disrupt the likes of Craigslist.

I guess as its an acquihire maybe the vision couldn't become a reality though :(

[+] rio517|12 years ago|reply
I get a bad gateway error.
[+] zimbatm|12 years ago|reply
This is how this letter reads to me:

Woohoo, we got acquired.

Thanks a lot for bringing our valuation up buy trusting us. We started $service to solve a problem that matters to you. Because of that we're joining $totally_unrelated_product.

Thanks for all the fish.

[+] hga|12 years ago|reply
Let me add:

"Because of that we're joining $totally_unrelated_product. And damaging the ecosystem that allowed us to get to this point."

It bears repeating that every time one of the acquire shutdowns occurs it makes users that much less willing to take a chance on a small startup. Even a shutdown like this that isn't screwing over existing users reminds everyone of the pattern.

Hmmm, maybe I should start ending this, or every message, with "Sarbox delenda est".

(Sarbox must be destroyed (https://en.wikipedia.org/wiki/Carthago_delenda_est) ; more specifically, this last nail and quite a few others need to be removed for the casket that the normal IPO was interred into.)

[+] jakejake|12 years ago|reply
Most likely they would have gone out of business either way because nobody is going to do an acqui-hire deal if their company had plenty of funding or was actually profitable. If I was working somewhere, I'd rather the founders managed to finagle an acqui-hire rather fire everybody.

You're right, though, there's nothing great about it for the users.

[+] pinaceae|12 years ago|reply
funny, in the old school economy this would be a failure.

oh crap, i couldn't run my company, the business i have built. i have failed my employees, my vision, my customers. all for naught, i got swallowed and now i am an employee.

but in web/tech bubble? hooray, i flipped this shit for cash. so long suckas.

[+] hga|12 years ago|reply
One caveat to this is with the closing of the IPO exit, one either has to be very successful or get acquired to exit. And your investors could be demanding some sort of exit, they're generally not in the game for your employees, vision or customers.

Arranging and exit for investors or founders can be extremely hard; I watched my father do that several times in the period when IPOs were still possible.

[+] ivanca|12 years ago|reply
This is a failure; is a net negative for their users, those were numerically more than the engineers. But the HN is crowed with the later plus short-term big profits are pompously celebrated by the vapid american culture (and media).
[+] outworlder|12 years ago|reply
Can I add this as a quote to my email signature? :)
[+] PhasmaFelis|12 years ago|reply
Build popular service, attract loyal user base, sell popular service to bigger company so they can gut it and screw your users; business as usual in the startup world, judging by 5 years of HN and Slashdot.

Every time I suggest this might not be a cool thing, people tell me I just don't understand the business model, or something. Same thing yesterday when Microsoft announced they were ripping out Skype's API. It's weird.

[+] zedpm|12 years ago|reply
Can anyone comment on the motivation for Dropbox to acquire a company that apparently helped people sell things? Is Dropbox interested in working in that domain or are they just picking up devs for their own product?
[+] reustle|12 years ago|reply
I get a google products vibe from these sorts of acquisitions. Don't get too comfortable with that little startup! It could disappear tomorrow...
[+] jrockway|12 years ago|reply
True of anything. It's just as correct to say, "don't ever fall in love; your lover will either leave you or die, and you'll just be sad then". While true, it's missing the point: the years of joy that can be had before someone dies (or gets acquired, or canceled).

Hate to be all philosophical, but everything is temporary. Even the Universe itself.

[+] lsc|12 years ago|reply
>Don't get too comfortable with that little startup! It could disappear tomorrow...

But that is true of all services. This is why savvy businesses try to stick with services that have competition; that way they have somewhere to go if their provider of choice goes under for whatever reason.

[+] alexeichemenda|12 years ago|reply
I'm sorry, but I do not fully understand your comment. "It could disappear tomorrow" ? Sold has written on their blog that they are shutting down their company..
[+] 7Figures2Commas|12 years ago|reply
I guess it shouldn't come as a surprise that a company named "Sold" sold itself when it got the chance.

Maybe more startups should choose M&A-friendly names. Acquired.io, which is available for registration, is a sure winner.

[+] Technologix|12 years ago|reply
I really don't get why Dropbox has acquired during the past two years Snapjoy, Mailbox, Endorse and Sold. Their product didn't change at all...
[+] ivanca|12 years ago|reply
I think there is a space for an disruptive _accelerator_ that completely prohibits this kind of behavior (a.k.a. acquihires), like a make-it-a-big-or-sink-with-it kind of thing, so users (and potential users) would trust more their start-ups knowing that this luxury-garage-sales-of-engineers is not the goal.
[+] jordanthoms|12 years ago|reply
This is a bit of a shame, Sold seemed like a good idea - I have some stuff I'd like to get rid of, but don't want to spend much time setting up the listing etc.

I didn't actually use them because they hadn't branched out into the product category (PC Hardware) that I would have used them for.

[+] DigitalJack|12 years ago|reply
I used it once and liked it. But they came across as dorky snobs in there marketing.
[+] tonydev|12 years ago|reply
Glad you enjoyed using Sold. We are definitely dorks, hopefully not snobs, and had a ton of fun making our marketing in house :)
[+] sjtgraham|12 years ago|reply
> I used it once and liked it. But they came across as dorky snobs in there marketing.

*their

Congrats to the team and to Dropbox!

[+] cmbaus|12 years ago|reply
I think the marketing is creative and well done. Although why would you sell those Alden longwings? Those are awesome shoes! :)
[+] lukenyc|12 years ago|reply
Hey Sold team... do you have any lessons learned to share with the community?
[+] AsymetricCom|12 years ago|reply
I don't work for Sold, but I think the #1 thing you should consider is how you brand your company to make it attractive for acquisition. A good name can go a long way.
[+] t0|12 years ago|reply
So they were acquihired?
[+] vdaniuk|12 years ago|reply
First post I've read on HN today and here are the summarized talking points of commenters:

1. Oh noes, they are celebrating their acquisition with users. That jerks!

2. Small startups are like Google products -- prone to be discontinued or acquired and closed. Beware!

3. They failed their users and their business model is a failure. Failue!

4. "What is sold?", "meh", "puns".

I love HN technical discussions but startup or business threads? So much negativity... Thats enogh HN for me for today.

Congratulations to Sold team!

[+] renownedmedia|12 years ago|reply
I guess you could say they were...

(puts on sunglasses)

Sold?

[+] gtallen1187|12 years ago|reply
i'm really interested to see what dropbox plans on doing by acquiring a service like this. Any ideas?
[+] joemaller1|12 years ago|reply
I'm starting to wish we'd see anything Dropbox was doing with all the acquisitions.

Dropbox has hired some really smart people (and shuttered some great services) over the past year or two, but I haven't yet seen that intellectual capitol reflected in their services.