The phrase "time kills deals" is a common refrain in mergers and acquisitions, underscored by OpenAI's acquisition of TBPN, which took several months to close after initial outreach in January. By the time the deal finalized, key executives who championed the acquisition had moved on or changed roles, illustrating how delays can derail M&A efforts, according to saastr.com.
The acquisition process began when Fidji, the new head of apps at OpenAI, pitched the TBPN deal internally to elevate OpenAI's brand and received approval. However, during the months it took to close, the management team shifted significantly: the COO moved to special projects, the CMO stepped down, the CRO left, and Fidji took a leave of absence. These leadership changes contributed to the deal's fragility, as noted by Noah Waisberg on LinkedIn and detailed by saastr.com.
This case exemplifies a broader trend in M&A where timing and internal company dynamics heavily influence outcomes. SaaStr shared experiences of two acquisition talks falling apart because the potential buyers themselves were acquired, leading to new priorities and leadership that deprioritized previous deals. Such shifts highlight the vulnerability of deals to market changes, competitor moves, and internal company transitions, emphasizing the importance of swift execution in M&A.
SaaStr's experience with multiple stalled acquisition offers and the OpenAI-TBPN deal both demonstrate how executive changes and market dynamics can halt deals. The OpenAI-TBPN acquisition timeline starting in January and closing months later serves as a concrete example of how prolonged deal processes risk losing momentum and support.