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> My answer: you will suffer from brain drain.and reputation loss,when you buy a smaller company,consumers assume that brand is now dead.

Not so sure about that. Maybe if you read HN a lot, but I think most users won't even notice.



"Facebook bought WhatsApp - guess we're moving the family group chat to Signal"


if that anecdote was applicable to the broader market, wouldn’t we have seen WhatsApp’s numbers decline and Signal’s numbers rise after the acquisition?


Signal is very popular but whatsapp was aquired before Signal was well known (2014-15 I think) and their user base mostly don't even know it belongs to FB. I have had multiple people act shocked when I tell them whatsapp and Instagram are FB.


I was being sarcastic


Your core consumers that are foundational to your brand will always care. But more often than not if there are no alternatives it just becomes a long term disinterest in your brand.

Fun example: Star wars fans and Disney aquisition.


Considering Star wars media continues to print money for Disney, and core Star wars consumers were appalled at the franchise before the acquisition (prequels), that's not the best example.




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