tag:blogger.com,1999:blog-7660844861872909261.post6633408770995640885..comments2023-03-28T18:30:05.613-04:00Comments on Reaction Wheel: Valuation for investorsJerry Neumannhttp://www.blogger.com/profile/11869373074132369401noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7660844861872909261.post-11027036678463308412011-06-11T14:29:48.088-04:002011-06-11T14:29:48.088-04:00Really good post...I ran my own startup through yo...Really good post...I ran my own startup through your formulas to see what would happen. :-)<br /><br />One more ad tech company that isn't on your list is AdMission, which was (sort of) acquired by Cobalt Group in May 2008: http://blog.kelseygroup.com/index.php/2008/05/06/most-of-admission-corp-sold-to-cobalt-group/<br /><br />But I couldn't find any pricing info. Maybe someone else has more data on the deal.<br /><br />I'm not even sure whether AdMission was venture-backed. But they did something similar to what my company does: automate the process of display ad design and creation.<br /><br />Thanks!Myleshttps://www.blogger.com/profile/14807745032466795107noreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-57085630413213469832011-06-10T18:33:26.321-04:002011-06-10T18:33:26.321-04:00This is great stuff. Only thing you need to keep i...This is great stuff. Only thing you need to keep in mind (I believe) is the annual cash these investments are throwing off to their shareholders. For some of these businesses that are high margin, those $s can add up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-87404239300161455912011-06-10T12:36:55.119-04:002011-06-10T12:36:55.119-04:00What a great guarantee!
Didn't mean to shor...What a great guarantee! <br /><br />Didn't mean to short-change the exits that Razorfish went through pre-aQuantive; many of my co-workers (i worked at RF from 06 to 09) were from the Scient/iXL days (Some are still there!) and I know the company changed its fair "share" of times. <br /> <br />I suppose the Microsoft acquisition always bothered me. For a company with so many products, and that now admits it costs about $8 of services per $1 of license fee to get their enterprise products working, they had no appetite for the Razorfish services portfolio; a shortsighted position. Still, a digression from our learning objective about ad tech exits. I would add the <a href="http://bit.ly/iDXPCo" rel="nofollow">Franchisegator deal</a> @$21.5m (later spun out by M$FT for "around $20m!)<br /><br />I was looking for a price for WPP's minority stake in iconmobile, or more recently Blue State Digital, just as examples, but no prices were disclosed.Benhttp://twitter.com/bsbnycnoreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-89905878718718132802011-06-10T10:34:03.132-04:002011-06-10T10:34:03.132-04:00I'm sure Microsoft upped their bid to $400m af...I'm sure Microsoft upped their bid to $400m after getting cover from my post. Nobody ever got fired for taking ReactionWheel advice. (If you have been, I will refund you your ReactionWheel subscription payment.)<br /><br />The Razorfish shareholders had many exits! I was one of the original Razorfish shareholders, from back in the mid-'90s. We had an awesome exit to the public markets in 1998. Then Razorfish got acquired by SBI (the public markets did not have such an awesome exit), who had an awesome exit to aQuantive, who had an awesome exit to Microsoft, who had an awesome (well, in a sense, not to Microsoft) exit to Publicis. When Publicis changes its name to publicisRazorfish, they will have an awesome exit too, I am sure, probably to the government of France, who will rename themselves the République Razorfish.<br /><br />But yes, you're right, the exit to Publicis is of a company that can no longer be called venture backed. Regardless, it's the price that someone would pay for an internet advertising business, so it's definitely a data point. If someone buys something and then resells it, that's two data points.The logical inconsistency isn't that I included Razorfish twice, it's that I didn't include the first (IPO) and the second (going private) exits. Same with Doubleclick. I would love to add more data points to the list. If you have any, suggest them!Jerry Neumannhttps://www.blogger.com/profile/11869373074132369401noreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-11707324753134775942011-06-10T10:04:13.382-04:002011-06-10T10:04:13.382-04:00Is it a coincidence that the AdMeld acquisition wa...Is it a coincidence that the AdMeld acquisition was $400m? http://selnd.com/jcsOlZ<br /><br />Also, FWIW, counting the aQuantive deal as well as Publicis acquisition of Razorfish double-counts Razorfish. Only the aQuantive shareholders had an exit.Benhttp://twitter.com/bsbnycnoreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-66743897570679587562011-06-10T09:51:15.172-04:002011-06-10T09:51:15.172-04:00Wow, very insightful, thank youWow, very insightful, thank youbrandonhttps://www.blogger.com/profile/17070382615133405599noreply@blogger.comtag:blogger.com,1999:blog-7660844861872909261.post-90564149160387582422011-06-10T09:43:37.092-04:002011-06-10T09:43:37.092-04:00Jerry, your thinking is most helpful to the entire...Jerry, your thinking is most helpful to the entire ecosystem. Thank you.dherman76https://www.blogger.com/profile/10467311812111797269noreply@blogger.com