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> How would paying 5% of yearly revenue make any sense for an acquisition?? 50x revenue is also a crazy number. I wonder what happens more, companies selling
by Dylan16807 2mo ago
> How would paying 5% of yearly revenue make any sense for an acquisition??
50x revenue is also a crazy number. I wonder what happens more, companies selling for ≤5% revenue or companies selling for ≥50x revenue.
- nateb2022 2mo agoWell OpenRouter went from ~$5M in mid 2025 to ~$140M about a year later, so although 50x might be compared to current revenue, they probably factored in some growth models to approximate its value over time.