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Twilio set to acquire Segment for $3.2B

forbes.com

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Re: Twilio set to acquire Segment for $3.2B

#4

Post by aeromusek »

Genius move for Twilio, honestly. Segment can supply the central hub to tie in all channel spokes Twilio already powers (especially after the SendGrid acquisition from a couple years ago).

I can't help thinking Segment had much more room to run though...everyone I know who uses them loves them, and they were still only just scratching the surface of the addressable market.

Re: Twilio set to acquire Segment for $3.2B

#5

Post by raiyu »

aeromusek wrote: post #4

Genius move for Twilio, honestly. Segment can supply the central hub to tie in all channel spokes Twilio already powers (especially after the SendGrid acquisition from a couple years ago). I can't help thinking Segment had much more room to run though...everyone I know who uses them loves them, and they were still only just scratching the surface of the addressable market.

With how frothy the public market is for SaaS companies with growth looks like their growth may have stalled out.

Usually board will look to make changes, replace founder CEO and if that doesn’t work then push for a sale.

Very smart acquisition for Twilio though.

Re: Twilio set to acquire Segment for $3.2B

#6

Post by knes »

That sounds like a sweet deal, especially as Twilio stock is current "overvalued" (like most tech stocks right now).

Jeff Lawson continues to follow the SFDC playbook of buying companies (and existing revenue growth) with stocks everytime their stock pops ;)

Re: Twilio set to acquire Segment for $3.2B

#8

Post by lmeyerov »

esotericimpl wrote: post #3

This seems cheap, segment was doing great especially with sass the way it is now.

congrats to the team!

after a certain sales price, there are very few potential buyers, and unclear if the usual top acquirers would want to pay the premium (google, ms, salesforce, ...). likewise, always risk of things going sideways wrt ipo. $1-3B exit in this situation makes a lot of sense.

more interesting to me is twilio seems to be such an operationally awesome company, going through each phase of growth so well

Re: Twilio set to acquire Segment for $3.2B

#9

Post by mikeyouse »

noway421 wrote: post #7

Last round's valuation seems to be $1.5B, so it looks like the acquisition price is 2x that so everyone hopefully walks off happy. I hope Accel, GV, etc. didn't have a crazy liquidation preference.

Liquidation preference usually just bases itself on the amount of money invested -- If Crunchbase is right, they've "only" raised like $280M, so even with 3x liquidation preference, they're well clear of the $850M number that would trigger any of the annoying rights that strip stock from common sharedholders. Everyone will have done well on this deal.
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