The recent acquisition of YouTube by Google for a stunning $1.65 billion made me wonder whether we were seeing a rise in the price. While the New York Times sees a return to the crazy valuations of the 90s, a look at the acquisition landscape does not seem to support their conclusions. Let’s take a quick look at the most noticed acquisitions (and if I missed some, please drop a note in the comments and I’ll add it):
|Feb-03||Blogger||$20 million (rumored)|
|Jul-04||Picasa||Under $5 million (rumored)|
|Jul-04||Oddpost||Yahoo||$20 million (rumored)|
|Jul-04||Webshots||Cnet Networks||$71 million|
|Jan-05||LiveJournal||SixApart||$20 million (rumored)|
|Feb-05||Bloglines||IAC (AskJeeves)||$25 million (rumored)|
|Mar-05||Flickr||Yahoo||$30-35 million (rumored)|
|May-05||Dodgeball||Around $10 million (rumored)|
|Jul-05||MySpace||News Corp||$580 million|
|Oct-05||Weblogs Inc.||AOL||$25 million (rumored)|
|Oct-05||Upcoming.org||Yahoo||Around $1 million (rumored)|
|Dec-05||del.icio.us||Yahoo||$30-35 million (rumored)|
|Jan-06||WebJay||Yahoo||Around $1 million (rumored)|
|Feb-06||MeasureMap||Less than $5 million (rumored)|
|Mar-06||Writely||Around $10 million (rumored)|
|Sep-06||Rojo||SixApart||$10 million (rumored)|
|Sep-06||Jumpcut||Yahoo||$15 million (rumored)|
So yes, Google is paying $1.65 billion for youtube, Ebay spent $2.6 billion on Skype (making the Google/YouTube deal look like a cheap deal), and News Corp. paid $580 million for MySpace (making them look frugal compared to the other two big deals) but the truth is that, across 20 major deals, those 3 stand out as the exception and not the rule. It appears that, on average, deals are generally below $50 million and, in most cases, lower than $10 million.
I’m sure people are going to call me out on this because I’ve previously warned about the possibility of a new bubble being created. However, at the current time, it seems the data does not support that conclusion yet.
What it appears to support, however, is an interesting calendar anomaly: it appears that major deals generally happen in the 4th quarter of the years (either that, or I got my data set wrong)
Another interesting point is that I haven’t found any other chart of that type around the net. So I figured this page can be a starting point. Hopefully, faithful readers will help me fill this chart with more data points so we can do more granular analysis
© Tristan Louis 1994-present Some rights reserved.