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I don't think this makes any difference at all (besides possibly tax reasons... I'm no expert). I wouldn't think there's much operational synergy between ownin
by tuna-piano 10y ago
I don't think this makes any difference at all (besides possibly tax reasons... I'm no expert). I wouldn't think there's much operational synergy between owning a customer.
But you seem to imply a financial reason. Say Netsuite's Oracle fee was $1M a year. If Oracle acquires them, Netsuite saves $1M a year sure, but Oracle also loses $1M year in external revenue. The result is the same.
- tw04 10y agoFor starters, they aren't paying a not-so-insignificant portion of that GP to a sales guy. There are absolutely tax benefits to it. And finally they don't have the cost of support, which can be quite large, of taking care of an external entity.