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A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

reuters.com

11–20 of 45 posts

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#11
post #4

Earlier quoted context omitted.

What's the lock-in?

I'm wondering too. We run dbt on-prem. Worst that could happen is we don't get any more free updates. But we have the software and it will continue to run.

the concern is that dbt-core will become stagnant.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#12
post #11

Earlier quoted context omitted.

I'm wondering too. We run dbt on-prem. Worst that could happen is we don't get any more free updates. But we have the software and it will continue to run.

the concern is that dbt-core will become stagnant.

It basically already has since they started developing dbt Fusion, so in that respect this probably doesn’t change much.

I expect they’ll keep developing Fusion but possibly as even more of a commercial-only offering than it already was.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#14

Thoughts on possible implications for users in foreseeable future? We built a lot using dbt and can't really think of going back or switching to alternatives

Are you using their cloud offering or just the software itself?

Just the software

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#15
post #11

Earlier quoted context omitted.

I'm wondering too. We run dbt on-prem. Worst that could happen is we don't get any more free updates. But we have the software and it will continue to run.

the concern is that dbt-core will become stagnant.

What's the problem specifically? Are you banking on some future features? Can't fix the bugs yourself? Worried it won't be compatible with future data warehouses?

I know people don't like it these days, but you can just continue to run old software.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#16

This smells like self-dealing on the part of A16z.

those are heavy accusations to toss around and that the title would like you to conclude, but doesnt pass the basic smell check of fivetran's founders still having control of the company. dbt was the hottest company in the data world 3 years ago and is valuable.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#17

This smells like self-dealing on the part of A16z.

That was the first thought I had, too. When the dot-com bubble burst, every VC was slapping companies together to try to forestall the black mark of having a “failure” and balance sheet write off that they would have to show the LPs (investors) in the next LP meeting. It got so bad that someone described it as “tying together two rocks and seeing if they will float.” Needless to say, most didn’t. So, this makes me wonder if we’re seeing the first signs of the bursting of the AI bubble which we all know we’re in the middle of. Maybe it’s legit and there is real “synergy” or whatever, but the fact that this is two companies within the same VC portfolio makes it suspect.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#18
> Data startups Fivetran and dbt Labs will merge in an all-stock deal, creating a combined data infrastructure company with nearly $600 million in annual revenue, the two companies told Reuters.

last update we had was Fivetran had 200m in 2023 and 300m in 2024 (https://www.fivetran.com/press/fivetran-surpasses-300m-arr-d...)

if Fivetran continued at same pace in 2025, that means it's at 400m ish and dbt was at 200m. not bad for dbt.

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#19

Last month Fivetran also acquired Tobiko, maker of SQLMesh, a dbt alternative. Looks like they are going all in. https://www.fivetran.com/press/fivetran-acquires-tobiko-data...

And paying to eliminate competition along with way...

Re: A16Z-backed data firms Fivetran, dbt Labs to merge in all-stock deal

#20
post #16

This smells like self-dealing on the part of A16z.

those are heavy accusations to toss around and that the title would like you to conclude, but doesnt pass the basic smell check of fivetran's founders still having control of the company. dbt was the hottest company in the data world 3 years ago and is valuable.

You're so close to the subject of the accusation by association, that your commentary actually makes their accusation stronger.
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