Summary:
Windsurf's acquisition by Cognition followed a failed deal with OpenAI and a $2.4B licensing agreement with Google DeepMind
Interim CEO Jeff Wang described the team's mood as "very bleak" after key executives departed for Google
A frenetic weekend of negotiations with Cognition ensured every employee received a payout, with all vesting cliffs waived
The deal highlighted the complementary strengths of Cognition's engineering and Windsurf's GTM and marketing teams
Wang reflected on the emotional journey from "the worst day" to "the best day" for Windsurf's employees
The Windsurf Acquisition Saga: A Tale of Uncertainty and Resilience
Days after the AI coding startup Windsurf announced its acquisition by Cognition, interim CEO Jeff Wang shared a heartfelt account on X about the emotional rollercoaster the team endured. The deal came after a failed acquisition by OpenAI, leading to a $2.4 billion licensing agreement with Google DeepMind that saw key executives depart, leaving the remaining team in a state of uncertainty.
The Bleak Friday That Changed Everything
Wang described an all-hands meeting where the mood was "very bleak" as employees learned about the Google deal and the departure of their CEO and co-founder. The news left many in tears, with the Q&A session turning understandably hostile. Despite the blow, Wang highlighted the company's retained strengths: "all of our IP, product, and strong talent including an excellent [go-to-market] machine."
A Weekend of Frenetic Negotiations
The turning point came when Cognition executives reached out, leading to a whirlwind weekend of negotiations. Wang emphasized the complementary nature of the two teams: Cognition's engineering prowess paired with Windsurf's world-class GTM and marketing teams. A key condition of the deal was ensuring every employee received a payout, with all vesting cliffs waived and equity accelerated.
From Worst to Best Day
Reflecting on the emotional whiplash, Wang noted that the Friday all-hands was "probably the worst day of 250 people’s lives," but by Monday, following the acquisition announcement, it had turned into "probably the best day." The deal not only saved the company but also secured the future of its employees, marking a rare happy ending in the often-cutthroat world of startup acquisitions.
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