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Well usually they only get acquired when they have something the purchaser wants, revenue was obviously not the get here
by xgulfie 10mo ago
Well usually they only get acquired when they have something the purchaser wants, revenue was obviously not the get here
- oh_my_goodness 10mo agoI don't exactly disagree. But the word "obvious" doesn't work very well during a bubble. Sure, yes, the current revenue doesn't justify the purchase price. But that doesn't mean that anything justifies the purchase price. We can't work backward rationally from "this deal makes sense" and get to "here's why". Corporate acquisitions often don't work that way, even when there's no bubble. The price is often just not justified at all. By anything. In many cases they're just capitalizing testosterone.
- xgulfie 10mo agoYeah I'm with you, didn't mean to imply there was any sort of underlying wisdom or truth behind the choice. People just love to rationalize
- lostlogin 10mo agoThe tv series Silicon Valley has a good episode where they discuss the importance of a start-up not having any revenue. Being pre revenue apparently means unlimited potential, with any level of revenue being bad, as you always have to grow it.
- oh_my_goodness 10mo agoYeah. That's totally real. (But I get that it was also funny, and I loved that show.)
- vidarh 10mo agoI have been in actual conversations where the topic was whether to avoid revenue to prevent being measured on it... That show was very on the nose about a great many things.