10X Revenue (continued)

I wrote a post about the recent ad network/ad infrastructure deals called 10x revenues several weeks ago.

Since then we've seen AQNT trade to MSFT (this morning) for $6bn which is 10x revenues.

But TFSM only got 3x revenues from WPP.

It's interesting that market leaders like DLCK, Right Media, and AQNT get 10x revenues but second fiddles like TFSM get 3x. That shows the power of market leadership for sure.

Here's the Microsoft release announcing the aQuantive deal.

Comments

[charlie crystle]

I don't think it shows the power of market leadership. I think market leadership shows the power of a solid, functioning model, and that second fiddles can also get 10x if they are worth it.

What I mean is functioning models, market leadership, and 10x exits are not necessarily interdependent.

[Jason]

How arrogant MSFT think of TFSM. Failed at DLCK deal, MSFT want something "bigger" than that of Google.

[Gerald Buckley]

Mr. Wilson, factor OUT the Avenue A | Razorfish business and it's a bit sweeter than 10x: There's NO WAY MSFT can unload AA|R at 10x it's revenues. They'll have to dump it or kill it (quick-like or slow lingering death).

AA|R also has a TON of investment in creative (which likely means Apple, Inc.) and Adobe Flash. Talk about alien DNA! When Ballmer won't allow iPods into his home... think he'll move em all over to MS Publisher and SilverLight? Yeah... that'll fly.

[Mark Evans]

Fred,
I think the MSFT-aQuantive deal is closer to 15X revenue given aQuantive's revenue guidance of $390M to $405M (http://investors.aquantive.com/phoenix.zhtml?c=69777&p=irol-newsArticle&ID=853658&highlight=)

[Steve]

The interesting question that I have yet to see addressed is: who else was bidding for AQNT? Microsoft was quite explicit they had to outbid a third party.

[Steve]

The interesting question that I have yet to see addressed is: who else was bidding for AQNT? Microsoft was quite explicit they had to outbid a third party.