Tweetdeck acquired at 50% premium over last acquisition last quarter...

Tuesday, May 3. 2011

Tweetdeck acquired at 50% premium over last acquisition last quarter...

From the Bubblewatch Dept - TechCrunch:

Twitter has acquired TweetDeck, we’ve heard from a source with knowledge of the deal, and the transaction will be announced in the next few days. The $40 million – $50 million purchase price includes both cash and Twitter stock, says our source.

In February we reported that an acquisition of TweetDeck by Bill Gross’ UberMedia was all but done, in the $25 – $30 million range.

A 50% premium in 3 months, not bad for a company that has only c 20% of the Twitter Client market, no revenues and depends totally on the Twitter ecosystem.......here's the one-minute strategic analysis

Good News:

- Shows the value that can be created by a good service, with Ad middlemanship, based on a fast growth platform - in an auction situation
- An inspiration to another tranche of startup founders-to-be, though to sell in Frothy Times you typically have to start beforehand
- Unlike some founders, Iain Dodsworth is not an ***hole - so there is hope

Bad News:

- The initial valuation, and a 50% increase in 3 months, is a sign of a frothy market
- It is not unlikely that Twitter will kill it, whether wittingly or no (see - Jaiku)
- Cue a flood of Tweetdeck clones being launched (See Good News point (ii) above )

One wonders if 3 months from now we will read of another acquirer

Posted by Alan Patrick in Bubblewatch at 20:56 | Comments (0) | Trackback (1)

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