Why does Yahoo! buy failed startups? It's the only way it can get good developers | The Verge

Supply and demand

"Mayer had taken a lot of flack in the press for purchasing startups with little traction, many of whom did not even build or invent the technology for which they were praised in the acquisition announcements. But Mayer isn't buying these companies for what they built; she's buying the engineers who built them.
[...]
Wouldn't it just be cheaper and easier to hire programmers on the open market or right out of college? Actually, no. The competition for developer talent in Silicon Valley today is insane. Take this recent piece from San Francisco Magazine describing the day Zynga laid off several hundred employees. Recruiters tried to hire freshly axed programmers in the comment section of news stories about the firings. Other head hunters descended on the bars where ex-staffers were drowning their sorrows and started buying shots and arranging interviews for new gigs."

Why does Yahoo! buy failed startups? It's the only way it can get good developers | The Verge