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Famous tech acquisitions’ cost per user

public.brightside.io

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Re: Famous tech acquisitions’ cost per user

#11
post #3

Uh, is it just me or is this chart having a hard time with comma versus period for "thousands separator"? Broadcast.com is listed as having $10,961 cost per user, but comes up as $10.961 on the chart. [Sale price of 5.7B for 520K active users]

It's not just you. I was about to post this. On a related note, 11K per user is insane. What did Yahoo see in Broadcast.com?

Mark Cuban

Re: Famous tech acquisitions’ cost per user

#12
Interesting dataset, though I do have some quibbles. For example, registered users aren't the same as monthly unique visitors, which is how CNET is best measured. And ecommerce like Zappos have completely different metrics. One thing I would like to see is the user numbers normalized against web users at the time, which helps put late 90s acquisitions in better perspective.

Re: Famous tech acquisitions’ cost per user

#15
post #10

Wow. This graph is certainly illuminating: https://public.brightside.io/v1/chart/321ef2c603e8d67080afcd... 450000000 is a lot of users. Metcalfe's law says that the value of a communication network is proportional to the square of the connected users. Then add to this the amazing growth they are seeing. I don't think people quite realize what this means. EDIT: In general, it baffles me how many armchair opinionators…

This was exactly the chart I wanted to see after I saw the first one.

...but did they really put a LLS line through that dataset?

Re: Famous tech acquisitions’ cost per user

#20
it's odd that we focus so much on just user numbers yet talk so much about aqui-hiring.

In most cases it's not just the users they're trying to get, but also the talent (with the idea that most of them aren't one hit wonders).

Acting like startup acquisition is a single-metric game seems like a gross oversimplification. This chart only proves it by showing there is little correlation between user count and buy price.

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