BubbleGen’s Umair reckon the Squash has gone “way over the top” with his most recent Writely post.
Positive hysteria (a la the TechCruch commenters) is as counterproductive as this kind of negative hysteria.
For those to whom it’s not obvious…
First, “teeny-weeny” is very much in the eye of the beholder. Even if Writely went for $5m, the Writely guys each made >$1m. That’s not too bad for a few months of work.
Second, worrying about pricing deals like this in terms of some kind nebulous independent revenue multiple misses the whole point. It’s the combined picture that counts. Google (etc) buy them because they instantly realize fairly significant synergies from a user base, because they want to learn/capture technology, or simply because they want the people.
Third, XYZ company you luv probably didn’t get the call because they don’t have any of the above.
Last time, I remember people talking about revenue multiples not being the “point” was about 1999 I think. BubbleGeneration indeed. Microchunk me, Umair.