"poaching talent in billion-dollar deals still amounts to an acquisition by another name - and it could someday meet the same scrutiny as blockbuster mergers. "If these acqui-hires arebeing done in a way that is ultimately having a bad effect on competition, that is something that enforcers should be able to look at, and they should be looking at," she said during a talk at NYC Summit, an annual gathering of tech builders and investors hosted by the early-stage venture firm Primary."
"Meta hired Scale AI's Alexandr Wang after investing $14.3 billion in the data labeling startup. Google picked off Windsurf's chief executive and top researchers for a $2.4 billion licensing fee. Microsoft gutted Inflection, Amazon raided Adept, and so on. The deals appear to share a common goal: close quickly and dodge watchdogs. Khan made clear in New York that regulators aren't fooled. "If it is an effort to get around competition laws," she said, "it's definitely something they should be able to reach.""
Major technology companies increasingly acquire teams and talent from startups instead of buying companies, closing deals quickly to avoid regulatory review. Several high-profile moves include Meta hiring Scale AI's Alexandr Wang after investing $14.3 billion, Google picking off Windsurf executives for a $2.4 billion licensing fee, Microsoft hiring away Inflection staff, and Amazon raiding Adept. Regulators and antitrust agencies view large-scale acqui-hire activity as potentially equivalent to acquisitions that can harm competition. The Justice Department and the Federal Trade Commission have opened investigations into multiple deals. European antitrust authorities may also increase scrutiny of such arrangements.
Read at Business Insider
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