$1.1 billion. That's how much your company is worth if it's long on users and short on paying customers. Just ask Tumblr. Or Instagram. Each yanked down billion-dollar acquisitions despite making virtually no revenue.
Is this a big deal?
Acquihires And Billion-Dollar Payouts
Some seem to think so. At least, for acquihires, the kissing cousin to the revenue-free-massive acquisition. For example, Pando Daily's Sarah Lacy slams the acquihire, arguing that
Lazy profit-seekers love these periods in the Valley. Why not? They can make money without having to actually build a company. It’s like a get-out-of-actual-entrepreneurship-free card.
To read the full, original article click on this link: Silicon Valley's Perverse Disincentives To Make Money – ReadWrite
