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Ask HN: How to propose “we should merge companies”?

2 points by boltzmannbrain ↗ HN
1. If company A and B are both early startups with complimentary services, and a merger objectively benefits both A and B, how is the topic broached? How would B sell A on a merger?

2. Now what if A and B are competitors?

3. Enter big public company X that A and B both want to partner with. A is independently in conversations with X about partnering, but B is not. How would B bring up X and suggest an A+B+X partnership?

3 comments

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Nomentatus
After getting an opinion from a competent lawyer. Perhaps an antitrust lawyer. The gist of what you are asking is: "I'd really like to illegally collude, re a negotiation that's already started, rather than compete in that negotiation. How can I do this without getting caught?" Step one - don't drop a comment at HN.
verdverm
This sounds like the OP is asking about something like when Elon Musk and Peter Thiel formed PayPal from their payment processing companies.

How did you jump to illegal collusion from opening talks about a merger?

Nomentatus
Musk and Thiel's firms had no market power, then: both firms were in trouble - but I wouldn't be at all shocked if I learned they had talked to a lawyer, anyway. These two startups seem to be healthy and are in the market; not just ideas. They can't fix an "auction" being held by a third firm, or give the appearance of that.