5 ms·

~$40M ARR makes this a 75x Cursor yesterday was a 45X for comparison (9B, 200M) https://techcrunch.com/2025/04/16/openai-is-reportedly-in-talks-to-buy-windsur

by bix6 1y ago

~$40M ARR makes this a 75x Cursor yesterday was a 45X for comparison (9B, 200M) https://techcrunch.com/2025/04/16/openai-is-reportedly-in-talks-to-buy-windsurf-for-3b-with-news-expected-later-this-week/ https://techcrunch.com/2025/04/16/openai-is-reportedly-in-ta...

chipgap98 1y ago
Growth rate matters a lot though. If they are growing quickly that multiple reduces quickly
- lispisok 1y ago
  Easy to grow when you're selling one dollar bills for 75 cents
- bix6 1y ago
  You think they can double every year for the next 5 years?
airjason 1y ago
keep in mind a lot of $3B is ClosedAI paper money, so 75x ain't that ridiculous.
- bix6 1y ago
  Do you know the cash / equity split?
  - moralestapia 1y ago
    I do know that OpenAI doesn't have 3B in cash to just throw around. So, I'd be inclined to believe the vast majority of the deal is stock (or whatever that is called pre-IPO).
    - arrowleaf 1y ago
      Companies don't do these acquisitions with cash on hand. It's OpenAI and the whole pool of their creditors and investors.
    - deleted 1y ago
      [deleted]
    - swyx 1y ago
      oai has PPUs
      - bix6 1y ago
        I think the PPUs are just for employees but investors get equity?
ergocoder 1y ago
Investment vs. acquisition is going to have different price points. At $40M ARR, I assume the founders don't really need to make more money and are not in a rush to sell. Therefore, the price would go even higher. This can't be compared with investment where the founders still retain the control. Cursor is probably the fastest growing company in the history of our modern civilization. Achieving a really high multiple doesn't seem out of line. I'm skeptical of Cursor but I can see why they achieve that high valuation.