[phillmv]

Yes, but calling it an "acqui-hire" probably makes it look less good.

>Why payoff the VCs?

Because they're probably interested in the executive/founding team, and they can't leave without placating their investors. Wouldn't be surprised if the employees got shafted/walked away with a mild bonus.

As far as I can tell, this sort of thing basically acts as a shareholder wealth redistribution scheme to people who have demonstrated social proof.