"I have been thinking about this issue a lot as well, but not from the "financial" point of view, form the user point of view. There are tons of example out there of existing companies which have been aquired (not necessarily with a huge premium) and then, either completely shutdown or just slowly sunset (ack!). These companies offered products and services which had users, and even fans. I am not sure why the entrepreneurs eventually sold, but even if they put some cash aside (good for them), and if investors have been (even partially) paid back, I don't think that eventually these companies created a lasting value. When looking at other industries, the shape is more like a pyramid: a few (very few) large companies, then, a larger amount of suppliers, partners... etc, and an even larger amount of contractors, or very small companies providing a service. I feel like the web had the huge players and he very small ones, but there is no love of the "middle" size players, yet, they are..." - Julien