Acquihires: What Economics Tells Regulators

Acquihires — deals driven primarily by the acquisition of talent — have often been argued to be relatively harmless features of the startup ecosystem. Yet in today’s AI landscape, where elite technical teams are scarce and hiring increasingly resembles acquisition, these transactions warrant closer scrutiny. A recent twist, the “reverse acquihire,” allows incumbents to hire a startup’s team while compensating its investors through substantial licensing or services agreements. These a