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> While the acquisition price is public, would love to learn more about revenue or # of customers. They must have had some serious revenue/traction to be bought
by windexh8er 8y ago
> While the acquisition price is public, would love to learn more about revenue or # of customers. They must have had some serious revenue/traction to be bought for $170M.
Not exactly. I was at a startup that was only doing about $15M in annual revenue that got picked up for $350M. A lot of common PE values in tech are well past 25x in public stocks which seems (oddly) "normal" these days.
- mi100hael 8y agoUsually the Earnings part of P/E is 0 in startup acquisitions, so technically the P/E ratio is undefined. 25x revenue isn't unheard of, though. It's not that odd either if you figure out what angle the acquirer is betting on. Often it involves a mix of: - opportunity to easily cross-sell to a new swath of the market - continuing to grow the acquired business - realize economies of scale that the acquired business were working towards