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Business Times
17-07-2025
- Business
- Business Times
Big Tech ‘acquihiring' is an ugly but useful trend
IF YOU'RE a venture capitalist, you dream of backing the next billion-dollar startup to one day feast on the returns of a sale. The buyer? A gargantuan tech company, of course. But these days, Big Tech isn't buying so much as 'acquihiring' the most promising artificial intelligence firms, specialised deals that scoop up the industry's hottest talent while avoiding antitrust scrutiny, often by leaving behind business operations, aka the husk of a company. The phenomenon has been great for tech giants which can remove potential rivals more cheaply, but it's left venture capital investors in a rut with fewer returns than they would have expected from a traditional sale or even an initial public offering (IPO). How they react could set the whole industry on a different path and if we're lucky, a better one. One reaction to the trend has been to grumble. 'I dislike this phenomenon,' says Ali Ojjeh, chairman of Northgate Capital, a venture capital firm with US$5 billion of committed capital. Ojjeh was an early personal investor in Inflection AI, whose 70-strong team was acquihired by Microsoft Corp last year. Inflection promised its investors would be made whole, and they were, but with modest returns. Much the same happened with Scale AI, when Meta Platforms bought a 49 per cent stake in the firm for US$14.3 billion and hired its chief executive officer, Alexandr Wang, to head Mark Zuckerberg's new Superintelligence Labs division. Another recent example: Google paid US$2.4 billion for the senior leadership team and licensing rights of Windsurf, an AI coding assistant. Acquihires are nothing new. For well over a decade, large tech firms such as Alphabet's Google, Microsoft and Meta typically paid a few million dollars to hire talented engineers and product teams from small, early-stage startups, leaving their investors with modest or no returns. But the generative AI arms race supercharged that strategy, beginning with Microsoft's Inflection deal in 2024, and it has deflated the blockbuster returns that venture investors count on to drive their portfolios. The venture capital industry's so-called power-law model means payoffs for investors usually come from just one or two runaway successes such as Inflection or Scale AI. But if a hot startup like Scale gets a US$14.3 billion investment instead of a US$29 billion sale in a traditional acquisition, the difference means a fund returns just two times its investors' money instead of four times. Acquihires are 'hitting the outlier companies', Ojjeh says. 'It's favouring founders over shareholders and employees.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Board members of these startups are similarly boxed in, lacking alternatives and sometimes worried about burning bridges with tech giants for whom their most high-profile startups are the only realistic acquirers. What if the acquihiring trend becomes a permanent fixture? The mergers and acquisitions teams at tech giants are no doubt exploring all manner of hybrid deals that could help this new playbook keep working over the coming years, especially as antitrust regulators show no sign of softening. More acquihires would further entrench their dominance and be bad for the industry. But what if in the long term it led to a healthier market? Instead of pushing startups to get the highest possible valuation for a sale, venture capitalists (VCs) in an acquihiring market would prefer firms with a greater chance of running a long-term business and floating on the public markets. Strategic sales to Big Tech have always offered a premium over IPOs, but when such sales are less likely, going public becomes the more viable option. That could put venture investors on the hunt for startups with more sustainable businesses, not just those with a pitch deck promising hockey-stick growth and a total addressable market the size of Canada. That would be better than today's market dynamics. For all the money the power-law model has made for renowned firms like Sequoia Capital and Greylock Ventures, it has led to a cascade of negative outcomes for the public and wider market. VCs have pushed startups to move fast and break things, to blitzscale so they can dominate a market before competitors catch up. The costs have been high for both the market and public, from social media addiction to poorly treated workers and vanishing competition, as the book The World Eaters by Catherine Bracy vividly lays out. Venture firms, in one way, have brought these latest frustrations on themselves by relying for so long on just a couple of big exits to drive their fund returns. That model has helped extend Big Tech's financial dominance, such that nearly half of the S&P 500's earnings growth in 2025 comes from a handful of tech giants. But sometimes actions lead to unintended consequences. In her quest to strengthen antitrust oversight of Big Tech, former Federal Trade Commission chair Lina Khan may have inadvertently led tech companies to avoid scrutiny with just another flavour of anticompetitive behaviour. Yet, while their new acquihire trend may be an ugly one for the industry, it could also paradoxically spawn something better for everyone. Let's hope that's the case. BLOOMBERG
LeMonde
06-07-2025
- General
- LeMonde
The arms dealer, the general's daughter and the speed demon: An inheritance battle
This unknown man had just saved the France. On October 24, 1977, Akram Ojjeh, a businessman born in Syria and a Saudi citizen, posed for the press in Paris, grinning from ear to ear. He held a model of the ocean liner in his hands. The ship called France had been a source of national pride when it was launched in 1960. It carried out transatlantic crossings and cruises around the world until 1974. Lack of profitability, the oil crisis and competition from air travel had all taken their toll. It had been decommissioned for three years, moored in Le Havre, awaiting either the scrapyard or a new owner, when Ojjeh decided to buy it. He explained a little later that he wanted to anchor it off the coast of Louisiana or Quebec, both French-speaking regions, and turn it into "a kind of floating museum, designed to showcase the many artistic and technical achievements of French genius," according to an interview with Le Monde published on January 23, 1978. "All my cultural upbringing has been French since my earliest childhood," he explained. "And feelings for a woman or... a country, you just can't explain them."
Yahoo
01-07-2025
- Automotive
- Yahoo
This Incredible Collection of Pristine McLarens Is Going up for Grabs
Not all car collections are created equal. The late Mansour Ojjeh's personal collection of McLaren supercars is set to be sold by Tom Hartley Jnr. The assortment of 20 vehicles charts the evolution of the marque over the past four decades and includes examples of the finest models to leave Woking, almost all of which are in mint condition. More from Robb Report This $4.5 Million Mexican Abode Is Built Right Into a Cliff Overlooking the Pacific Ocean David Duchovny's Malibu Home and Train Caboose Guest Cottage Sell for $11 Million One of the World's Largest Spirits Companies Is Halting Whiskey Production at Its Irish Distillery How does one build up such a jaw-dropping collection of McLarens? It helps to have been integral to the marque's success, both on and off the track, for decades. The French-Saudi billionaire, who passed away in 2021, took an ownership stake in McLaren Racing in 1984. Shortly after this, Ojjeh, who was also the CEO of the TAG Group, financed the development of the TAG-Porsche engine that helped earn McLaren two Formula 1 constructor's championships and three driver's championships. But Ojjeh wasn't just interested in on-track success. Following the 1988 Italian Grand Prix, he got to talking to McLaren's then-CEO Ron Dennis and the legendary Gordon Murray about developing a road car. Anyone familiar with McLaren knows that this would lead to the creation of the F1, the vehicle that established the blueprint for the modern supercar. Ojjeh was so impressed with the results that he set about selling off his collection of cars, which included a number of Ferraris, and began building a new one made up of McLarens. Of course, these aren't just any old McLaren supercars. Each of the vehicles, from a 1998 F1 to a 2023 Elva, is the last example from its production run. They are almost all finished in a dazzling metallic orange originally called 'Yquem,' after the dessert wine, but which would eventually be renamed to 'Mansour Orange.' The supercars are almost as close to brand new as you're going to find anywhere on the secondary market. All but two of the vehicles remain in 'factory-delivered condition' and have been maintained under direct instruction from McLaren. The two that have been driven include the collection's crown jewel, the F1, which has just over 1,100 miles on the odometer, and a P1 GTR that was used exclusively for McLaren-run track days. Are you already imagining a stunning orange McLaren sitting in your garage? Tom Hartley Jnr hasn't said when it'll begin selling Ojjeh's McLarens, but it figures to be soon. There has also been no word on pricing, but considering that the British classic car dealer recently sold Bernie Ecclestone's collection of grand prix cars for $646 million, those looking for a bargain should probably look of Robb Report The 2024 Chevy C8 Corvette: Everything We Know About the Powerful Mid-Engine Beast The World's Best Superyacht Shipyards The ABCs of Chartering a Yacht Click here to read the full article.
Hypebeast
01-07-2025
- Automotive
- Hypebeast
Massive McLaren Mansour Ojjeh Collection Surfaces for Sale
Summary Luxury car dealerTom Hartley Jnrhas been entrusted with the sale of The Mansour Ojjeh Collection, an extraordinary group ofMcLarenroad cars that reflects the personal vision of the man who helped define the brand. Mansour Ojjeh, the late CEO of TAG, played a pivotal role in McLaren's history. After sponsoring the Williams F1 team in 1979, he took a major stake in McLaren in 1984, financing the TAG-Porsche turbo engine program that led to three Drivers' Championships and two Constructors' titles. Over the next four decades, his influence helped shape McLaren's racing dominance and the creation of McLaren Automotive. At the heart of the collection is a one-of-oneMcLaren F1, the final chassis ever produced. Finished in a unique color called Yquem — later renamed Mansour Orange — it has just 1,810 km on the clock and remains in factory condition. Each car in the collection carries the final chassis number of its model and was maintained by McLaren under Ojjeh's direct instruction. Aside from occasional use of theP1 GTRat official track days, the rest of the collection remains untouched. This offering represents more than rare cars; it's a tribute to a man whose pursuit of excellence helped define McLaren's DNA. Full details of the sale are available through Tom Hartley Jnr.
Auto Blog
30-06-2025
- Automotive
- Auto Blog
The McLaren Collection That Can't Be Replicated
A Cornerstone of McLaren Automotive The world of elite car collections has seen no shortage of legends, but few match the stature of Bernie Ecclestone's 69-car Grand Prix trove, which recently sold under the guidance of renowned exotic car dealer Tom Hartley Jnr. Now, Hartley is handling another landmark sale – this time, a deeply personal and historic collection curated by one of Formula 1's most influential figures: Mansour Ojjeh. Ojjeh was a cornerstone of McLaren's modern success. Through his company TAG (Techniques d'Avant Garde), he helped bankroll McLaren's turbo era in the 1980s and remained a key player in the team's rise, guiding them to seven Constructors' and ten Drivers' Championships. He was also instrumental in launching McLaren Automotive and shaping the road car division that now rivals the world's best. Ojjeh's 'The Last of Legends' Car Collection Dubbed 'The Last of Legends,' Ojjeh's McLaren road car collection is arguably the most significant ever assembled by a private individual. Comprising 20 meticulously curated vehicles, the collection includes icons such as the Speedtail, P1, Senna, Elva, Sabre, and several Longtail and Le Mans editions. The centerpiece is a McLaren F1 – the last one ever built – painted in a one-off shade named 'Yquem,' later rebranded by McLaren as 'Mansour Orange' in tribute. The car has just 1,810 km on the odometer. This model follows Ojjeh's wish to collect only the final chassis of each model, ensuring each car carries the latest technical advancements. Except for the F1 and a lightly driven P1 GTR, every vehicle remains unused and preserved in as-delivered condition. All were maintained directly by McLaren under Ojjeh's specific instructions – an arrangement never offered to any other collector. 'Parting with this very personal collection is not easy, but it is time for it to go to its new custodian, one who truly 'gets it' and will cherish owning and caring for it the way Mansour did,' said Kathy Ojjeh, widow of Mansour Ojjeh. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. A Personal Collection Like No Other Ojjeh's obsession with detail extended beyond model selection. Each vehicle was specified down to the last finish, reflecting not just his eye for aesthetics but his belief in preserving McLaren's legacy. Even after his passing in 2021, his Mclaren Elva was delivered posthumously with Mansour's crest in place of McLaren's usual badging, a respectful nod from the company he helped shape. 'This is the most significant McLaren road car collection ever assembled, and I sincerely hope it is acquired by a single buyer, just as the Ecclestone Grand Prix collection was which we sold earlier this year,' said Tom Hartley Jnr. Source: Tom Hartley Jnr About the Author Jacob Oliva View Profile
