This is a general point that has been around the TechGeist watercooler over the last few days, what is happening to the small internet company? It seems that (oddly enough, given the slower acquisition pace of the last year) that we are quickly moving to four major companies in the internet sector: Google, Facebook, Microsoft, and Yahoo. Contemplate this, if one of the four purchased Twitter, what other company that is truly giant is left?
You can think of a few, but the concept is solid. More and more it seems that any new promising company is hoovered directly into the jaws of one of the big four. FriendFeed is just the latest example. Of course, other play IAC is not taking this sitting down, there is MySpace prowling, and LinkedIn booting about. But when it comes to size, there are four players, and then everyone else.
It is beginning to worry us. If younger companies are not allowed to take their time and mature, we will have a very boring technology world to be sure. This could all be paranoid speculation to be sure, but if we do not somehow change this, perhaps by having more midsize companies nab the upstarts. Anything to get the founders the space they need in their new corporate homes.
If we keep buying all the little teams, who is going to innovate?
