That's 1000 dollars per user (that created content). Isn't that too much? Is this value important?
I don't think this is an effort to acquire users.
Google Acquires Aardvark For $50 million
31–40 of 104 posts
Re: Google Acquires Aardvark For $50 million
#32Earlier quoted context omitted.
Sorry, would you care to elaborate? I'm not really sure what you mean by "the M&A department the first time around". I think the fact that only _some_ of the team members are ex-Googlers is significant. Additionally, what other business case could their be to purchase such a small, new company. Couldn't Google just have integrated these features into their shiny new Buzz service _last week_ and have overshadowed Vark…
If you quit a company, do a successful startup, and then get re-acquired by the company you quit in the first place, chances are that you don't want to go back to work for them again. If you did, why did you quit your job in the first place?
It would depend on the events which led up to leaving Google in the first place. I doubt the original team left Google because it wasn't challenging enough or there wasn't enough flexibility, both of which would be reason enough to leave a lesser company to go out on your own. If your logic was accurate, then why would Aardvark have even sold out to Google in the first place?
Re: Google Acquires Aardvark For $50 million
#33Earlier quoted context omitted.
Sorry, would you care to elaborate? I'm not really sure what you mean by "the M&A department the first time around". I think the fact that only _some_ of the team members are ex-Googlers is significant. Additionally, what other business case could their be to purchase such a small, new company. Couldn't Google just have integrated these features into their shiny new Buzz service _last week_ and have overshadowed Vark…
If you quit a company, do a successful startup, and then get re-acquired by the company you quit in the first place, chances are that you don't want to go back to work for them again. If you did, why did you quit your job in the first place?
To make a lot more money, for example.
Re: Google Acquires Aardvark For $50 million
#34This price seems really high considering the amount of traction aardvark had (not much). $50M is a pricey talent acquisition
It is, however, merely pocket change to the Google Corporation. If it works out then they win. If it doesn't work out at least it won't benefit any of their competitors.
Plus they get the cool early-adopter-of-new-search-technology userbase.
Re: Google Acquires Aardvark For $50 million
#35Earlier quoted context omitted.
When listening to Sergey talk about Google Buzz ten minutes into this video he brings up the value of using buzz to ask questions to his contacts with the recommendation system directing the question to who best can answer it. http://www.youtube.com/watch?v=d_W6Qbob2mg#t=10m10s I was like "this sounds like Aardvark".
So why spend $50M when the integration path and implementation are reasonably well flushed out?
Cheaper than a lawsuit later
Re: Google Acquires Aardvark For $50 million
#36Earlier quoted context omitted.
It may not be too high if you look at the VC money they had raised. $6M had been invested so if that was a 50% stake then you are looking at a 4x return for the VC. Isn't that about right?
The buyer doesn't do his valuation based on what's put into the company.
Not true (or at least not ALWAYS true). Do you think corpdev guys are immune to anchoring? Here's a study:
"Take a minute and answer this two-part question:
1. Is the percentage of African nations in the United Nations higher or lower than 65? 2. What is the percentage of African nations in the United Nations?
This was one of the queries that Amos Tversky and Daniel Kahneman posed in their 1974 paper in Science called “Judgment Under Uncertainty: Heuristics and Biases.” It turns out that the answer you provide to the second question is heavily swayed by that first question. The average estimate for question two was above 45 percent. When question one was lowered from 65 percent to 10 percent, the average estimation of question two was dropped to 25 percent. "
Source: http://sethgodin.typepad.com/files/26237737-fixed-to-flexibl...
In a financial negotiation, setting an anchor can be powerful. a VC investment (and accompanying valuation) is an anchor.
Re: Google Acquires Aardvark For $50 million
#37Earlier quoted context omitted.
Aardvark will integrate extremely naturally into Google Buzz.
When listening to Sergey talk about Google Buzz ten minutes into this video he brings up the value of using buzz to ask questions to his contacts with the recommendation system directing the question to who best can answer it. http://www.youtube.com/watch?v=d_W6Qbob2mg#t=10m10s I was like "this sounds like Aardvark".
http://www.youtube.com/watch?v=d_W6Qbob2mg#t=0m16s
Really?
Pagerank doesnt have anything to do with twitter and facebook.
Its a great idea, and its probably one of the major factors that made google a success, but today it is not a very important factor in google being a bigger company than fb and twitter.
Re: Google Acquires Aardvark For $50 million
#38Saw these guys at Facebook HQ a couple months ago. Seemed like during their entire presentation they were trying to pitch their company to someone with purchasing power at FB
ha, I was one of the presenters there, for Sharendipity. You're right that Aardvark didn't talk much about the tech, considering it was for Developer Fridays. They did focus a lot on expanding the ways you could use the social graph in FB though. I thought it was nice to see that they've been acquired, although I thought the price tag was a bit surprising.
Re: Google Acquires Aardvark For $50 million
#39Wow! I've been an avid 'Varker for sometime now and this is very surprising! I think this is probably more of a talent acquisition than anything: Just the _highlights_ from http://vark.com/team * Max Ventilla - former Googler; marketing and monetization * Nathan Stoll - former Googler; headed Google News for three years * Fritz Schneider - former Googler; founded and led Google's Firefox and Safe Browsing teams * Win…
There was a time I believed all corporate activities were based only on merit. Anything not completely merit derived would be illegal. That's what we're made to believe with all kinds of anti-descriminition laws (you can't ask age, about kids, etc during interviews for example). It turns out, everything is friend based. Know rich people? They'll help you get rich too. Have a project you don't want to do inside of Goo…
You just want to world to recognize you as "having merit" and give you money? You want to be successful, but are unwilling to make any sort of effort?
Create something remarkable and people with money will find you.
Re: Google Acquires Aardvark For $50 million
#40Earlier quoted context omitted.
When listening to Sergey talk about Google Buzz ten minutes into this video he brings up the value of using buzz to ask questions to his contacts with the recommendation system directing the question to who best can answer it. http://www.youtube.com/watch?v=d_W6Qbob2mg#t=10m10s I was like "this sounds like Aardvark".
So why spend $50M when the integration path and implementation are reasonably well flushed out?
The recommendation system is not a trivial thing to create, I'm guessing Aardvark's rec system is at least part of it.