alt Hacker NewsOpenRouter already takes in around $140M in yearly revenue. How would paying 5% of yearly revenue make any sense for an acquisition??
Replies
leros • yesterday at 7:57 PM
10% would be more typical. Perhaps the math is that OpenRouter inside Stripe makes it twice as valuable. You often see acquisitions priced on the value of the company post-acquisition.
> How would paying 5% of yearly revenue make any sense for an acquisition??
50x revenue is also a crazy number. I wonder what happens more, companies selling for ≤5% revenue or companies selling for ≥50x revenue.