One reason could be user acquisition. It can cost a lot of money to acquire new users or reach a specific target market. So sometimes it makes sense to buy a co

One reason could be user acquisition. It can cost a lot of money to acquire new users or reach a specific target market. So sometimes it makes sense to buy a company who reaches that audience, regardless of their revenue. Then you can roll that business into your existing product. Other times it's worth a premium if you want to get into a particular business and have nothing or are playing catchup.