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With how frothy the public market is for SaaS companies with growth looks like their growth may have stalled out. Usually board will look to make changes, repl
by raiyu 6y ago
With how frothy the public market is for SaaS companies with growth looks like their growth may have stalled out.
Usually board will look to make changes, replace founder CEO and if that doesn’t work then push for a sale.
Very smart acquisition for Twilio though.
- rasen58 6y ago> With how frothy the public market is for SaaS companies with growth looks like their growth may have stalled out. Can you explain what this means. Why does the first part of the sentence imply the second?
- cheriot 6y agoIf they could show strong growth continuing they'd have made more money with an IPO than an acquisition. At least that's what the comment is suggesting.
- brogrammernot 6y agoThe other case is they didn’t want to deal with going through an IPO, got a great offer for their business and a major liquidity event for their employees. Going public, despite profits made, really sucks the soul out of a company. Twilio and Segment’s visions align pretty well so I think that played a role as well. Outside of golden handcuffs, a large portion of their employees are liquid immediately as opposed to an IPO with a 6-12 month lockup for employees plus the rise/fall of a stock price during that time. All in all, I think they made the right choice to sell instead of going for an IPO.