3 ms·

It's a bit of a weird area - it's a number that would be a bit too high for a standard acquihire/shutter, but probably not a massive bottomline boost for a comp

It's a bit of a weird area - it's a number that would be a bit too high for a standard acquihire/shutter, but probably not a massive bottomline boost for a company large enough to pull off the acquisition. Unless you were really growing, or had a massive addressable market you're barely touching (in which case, you'd probably question exiting at that price, even if it's wise), it might be hard as a "bolt-on" to an existing org.

nostrademons 8y ago
Those size acquisitions usually aren't based on revenue - rather, they're for companies that either have valuable proprietary technology or an early lead in a market that the acquirer wants to get into. The acquirer is paying for the ability to jumpstart their entry into the market - by dropping $40-80M they can get a ready-made product, team, and early userbase that's been assembled over 2-3 years and develop from that. If they instead tried to develop the product in-house, they run a serious risk of the market moving on and the startup becoming untouchably entrenched before they can get their entrant in.