Analysis

When Startups Shut Down After Acquisition: 50 Case Studies of Products That Disappeared

For users, few things are more frustrating than learning your favorite app has been "acqui-hired" - industry speak for "we bought the company but we're shutting down the thing you love." An estimated 60-70% of acquired products are eventually discontinued, ranging from beloved consumer apps to enterprise tools.

This analysis examines 50 notable products that were shut down after acquisition, exploring why companies kill acquired products, what happens to users, and whether there are warning signs before the shutdown announcement.

Our Own Story

This website (yesitsyes.com) was part of a product shutdown. When Twitter acquired Yes, Inc. in 2016, the Frenzy and WYD apps were discontinued within weeks. We've repurposed this domain to track such acquisitions - including our own.

Why Products Get Shut Down After Acquisition

Before diving into case studies, it's important to understand the various reasons companies discontinue acquired products:

1. Acqui-Hire (Talent Acquisition)

The most common reason: the acquirer wanted the team, not the product. Keeping the product running would require resources better spent elsewhere. Examples: Yes Inc (Twitter), Parakey (Facebook), most Google acqui-hires.

2. Competitive Elimination

Sometimes the goal is removing a competitor from the market. The product is killed intentionally to protect the acquirer's existing offering. Rare but notable examples exist.

3. Technology Absorption

The technology is integrated into existing products, making the standalone version redundant. Example: Summize became Twitter Search.

4. Failed Integration

The acquirer tried to operate the product but couldn't make it work within their organization. Example: Vine at Twitter.

5. Regulatory Requirements

Some acquisitions come with conditions requiring product discontinuation. Less common but occurs in heavily regulated industries.

6. Economic Rationalization

During downturns or restructuring, acquired products that aren't core to the business get cut. Many products died in the 2022-2023 tech layoffs.

50 Products Shut Down After Acquisition

Twitter Acquisitions

Product Acquired Shut Down Reason
Vine Oct 2012 (~$30M) Jan 2017 Failed monetization, competition
Periscope Jan 2015 (~$100M) Mar 2021 Competition from FB/IG Live
Yes, Inc. (Frenzy/WYD) Dec 2016 Dec 2016 Acqui-hire
Niche Oct 2014 (~$30M) 2017 Integrated into creator tools
Mitro Sep 2014 Sep 2014 Acqui-hire (open-sourced)

Google / Alphabet Acquisitions

Product Acquired Shut Down Reason
Google Reader (Feedburner tech) 2007 Jul 2013 Low priority, resource rationalization
Bump Sep 2013 Jan 2014 Acqui-hire (talent for Google+)
Sparrow Jul 2012 Jul 2012 Acqui-hire (talent for Gmail)
Quickoffice Jun 2012 Jun 2014 Integrated into Google Docs
Aardvark Feb 2010 ($50M) Sep 2011 Failed to find product-market fit
Meebo Jun 2012 (~$100M) Jul 2012 Acqui-hire for Google+
Slide Aug 2010 ($182M) Aug 2011 Products failed at Google
Picnik Mar 2010 Apr 2012 Integrated into Google+
Songza Jul 2014 Jan 2016 Integrated into Google Play Music
Revolv (Nest) 2014 (via Nest) May 2016 Hardware bricked intentionally

Meta / Facebook Acquisitions

Product Acquired Shut Down Reason
FriendFeed Aug 2009 ($50M) Apr 2015 Acqui-hire (team absorbed)
tbh Oct 2017 Jul 2018 Unable to sustain growth
Moves Apr 2014 Jul 2018 Low usage
Hello 2015 (internal) 2017 Failed dialer app
Lasso 2018 (internal) Jul 2020 Failed TikTok competitor
Slingshot 2014 (internal) Dec 2015 Failed Snapchat competitor
Parse Apr 2013 Jan 2017 Couldn't compete with AWS/Firebase
Beluga Mar 2011 Mar 2011 Became Facebook Messenger

Microsoft Acquisitions

Product Acquired Shut Down Reason
Sunrise Calendar Feb 2015 (~$100M) Aug 2016 Integrated into Outlook
Wunderlist Jun 2015 ($100-200M) May 2020 Replaced by Microsoft To Do
Accompli Dec 2014 ($200M) Evolved Became Outlook Mobile
aQuantive May 2007 ($6.3B) 2012 $6.2B writeoff - failed integration
Mixer 2016 (as Beam) Jul 2020 Couldn't compete with Twitch

Yahoo Acquisitions (Now Part of Apollo)

Product Acquired Shut Down Reason
Delicious 2005 Sold 2011, limbo Neglected
GeoCities 1999 ($3.6B) 2009 Obsolete platform
Flickr 2005 ($35M) Sold 2018 Neglected, sold to SmugMug
Tumblr 2013 ($1.1B) Sold 2019 ($3M) Failed to monetize
Broadcast.com 1999 ($5.7B) 2002 Dot-com bubble

Apple Acquisitions

Product Acquired Shut Down Reason
Lala Dec 2009 ($85M) May 2010 Technology absorbed into iTunes
TestFlight Feb 2014 Evolved Integrated into App Store Connect
Dark Sky Mar 2020 Jan 2023 Integrated into Apple Weather

Other Notable Shutdowns

Product Acquirer Acquired Shut Down
Mailbox Dropbox Mar 2013 ($100M) Feb 2016
Carousel Dropbox (internal) 2014 Mar 2016
Posterous Twitter Mar 2012 Apr 2013
Dodgeball Google 2005 2009
Jaiku Google Oct 2007 Jan 2012
Kik (kin ecosystem) MediaLab 2019 Evolved
Musical.ly ByteDance Nov 2017 ($1B) Aug 2018
HipChat Atlassian 2012 Feb 2019

Statistics: What Happens After Acquisition?

Post-Acquisition Outcomes

  • Products Discontinued: ~60-70% (estimated)
  • Products Continue Operating: ~15-20%
  • Technology Integrated: ~10-15%
  • Eventually Sold/Spun Off: ~5%

Timeline to Shutdown

Timeframe % of Shutdowns Typical Reason
Immediate (0-3 months) 25% Pure acqui-hire
Short-term (3-12 months) 20% Quick integration or abandonment
Medium-term (1-3 years) 35% Failed operations, strategy shift
Long-term (3+ years) 20% Eventually sunset, deprecated

Warning Signs Your Favorite App Might Disappear

Based on patterns from these 50 case studies, here are warning signs that an acquired product may be shut down:

  1. Acquisition announcement is vague: No specific plans for the product, focus on "team joining"
  2. Founders leave quickly: If key founders depart within 6 months, product often follows
  3. No updates post-acquisition: Product development stops or slows dramatically
  4. Integration announcements: "Features will be integrated into [parent product]"
  5. Terms were undisclosed: Often indicates acqui-hire rather than strategic acquisition
  6. Competitor acquired: If acquirer has competing product, yours may be redundant
  7. Acquirer has history of shutdowns: Google, in particular, has a pattern
  8. Economic conditions deteriorate: Non-essential products cut in downturns

What Happens to Users?

When acquired products shut down, users typically face:

Best Case Scenarios

Worst Case Scenarios

The Most Controversial Shutdowns

Vine (Twitter)

Perhaps the most mourned shutdown, Vine had created an entire category of content creators who lost their platform overnight. The shutdown was especially painful because Vine had clear cultural impact but Twitter couldn't figure out monetization.

Google Reader

The RSS reader's shutdown in 2013 sparked such backlash that it became symbolic of Google's willingness to kill beloved products. The "Google Graveyard" meme traces back to Reader.

Wunderlist (Microsoft)

Users loved Wunderlist, and Microsoft's replacement (To Do) was widely considered inferior for years. The shutdown was announced in 2015 but didn't happen until 2020, with the founder publicly opposing it.

Revolv (Nest/Google)

Unique in that hardware was intentionally bricked. Users who paid $300 for the smart home hub woke up one day to a non-functional device. This raised questions about whether you truly "own" smart home products.

Dark Sky (Apple)

Popular weather app's Android version was immediately discontinued, with iOS following later. Apple integrated the technology into Weather, but the dedicated app's detailed forecasts were missed.

Frequently Asked Questions

Why do companies shut down products after acquisition?

Products are shut down after acquisition for several reasons: (1) Acqui-hires where talent was the goal, not the product; (2) Strategic elimination of competitors; (3) Integration into existing products making standalone version redundant; (4) Resource constraints - acquirer can't justify operating costs; (5) Failed integration attempts; (6) Regulatory requirements; (7) Economic rationalization during downturns.

What percentage of acquired products get shut down?

Estimates suggest 60-70% of acquired products are eventually discontinued. The rate is even higher for acqui-hires (where nearly 100% of products are shut down) and lower for strategic acquisitions of profitable products. Companies like Google have particularly high shutdown rates for acquired products.

How long does it take for acquired products to be shut down?

Based on our analysis: ~25% are shut down immediately (within 3 months), ~20% within the first year, ~35% within 1-3 years, and ~20% after 3+ years. Acqui-hires typically result in immediate shutdowns, while products that are initially operated may take years to be deprecated.

What are the warning signs an app will be shut down after acquisition?

Warning signs include: vague acquisition announcement focused on "team joining"; founders leaving quickly; product updates stopping; "integration" language in announcements; undisclosed deal terms (indicates acqui-hire); acquirer already has competing product; acquirer has history of shutdowns (Google); deteriorating economic conditions.

Can I get my data when an app shuts down?

Usually, but not always. Better-handled shutdowns provide 30-90 day data export windows with tools to download your content. Some products (like Vine) archive content publicly. Worst-case scenarios include short notice and no export options. Hardware shutdowns (Revolv) may leave devices non-functional with no data recovery.

Which company shuts down the most acquired products?

Google has the most notorious reputation for shutting down acquired products, inspiring the "Google Graveyard" (killedbygoogle.com) website. This is partly because Google makes more acquisitions than most companies and has a culture of sunsetting products that don't meet usage thresholds. Yahoo also shut down many acquired products during its decline.

What happened to Vine after Twitter bought it?

Twitter acquired Vine in October 2012 for approximately $30 million, before it even launched. Vine became hugely popular, pioneering 6-second looping videos. However, Twitter struggled to monetize it and faced competition from Instagram and Snapchat. Twitter announced Vine's shutdown in October 2016, with the app closing in January 2017. The Vine archive remains accessible.

What is the Google Graveyard?

The "Google Graveyard" (killedbygoogle.com) is a website cataloging all the products and services Google has discontinued. It includes both acquired products (like Google Reader, Sparrow, Meebo) and internally-developed ones (Google+, Stadia). The site has become symbolic of tech companies' willingness to shut down products users love.

Why did Microsoft shut down Wunderlist?

Microsoft acquired Wunderlist in 2015 for $100-200 million and planned to replace it with Microsoft To Do. The shutdown was repeatedly delayed as To Do took time to match Wunderlist's features. Wunderlist founder Christian Reber publicly criticized the decision and offered to buy it back. The app was finally shut down in May 2020.

What products has Apple shut down after acquisition?

Notable Apple shutdowns include: Lala (music streaming, 2010), Dark Sky (weather app, 2023), and various smaller acqui-hires. Apple is generally more secretive about acquisitions and tends to integrate technology rather than operate standalone products. TestFlight evolved into Apple's beta testing platform rather than being shut down.

What was the Revolv shutdown controversy?

Revolv was a smart home hub acquired by Nest (owned by Google) in 2014. In 2016, Google announced the hardware would be intentionally bricked - rendered non-functional via software update. Users who paid $300 for the device were left with useless hardware. This sparked debate about smart home ownership and raised questions about buying connected devices.

Are there laws protecting users when apps shut down?

Generally, no specific laws require companies to keep products running. Terms of service typically give companies broad rights to discontinue services. GDPR and similar laws require data portability (you can request your data), but don't prevent shutdowns. Some consumer protection advocates argue for "right to repair" style laws for software, but none currently exist.

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