alt Hacker NewsProfitability might not be as relevant as it used to be in M&A discussions, but it matters when you’re paying $1B.
Valuations like this only make sense if there’s a clear path to significant strategic leverage or future cash flow.
Profitability might not be as relevant as it used to be in M&A discussions, but it matters when you’re paying $1B.
Valuations like this only make sense if there’s a clear path to significant strategic leverage or future cash flow.
No, it doesn't matter when you're paying $1B. Why would it? Tech companies don't care about profits. It's easy to become profitable - tech margins are obnoxiously high. They're bought and valued for their ability to scale and rapidly absorb market share.