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How Not To Sell A Company

We pick up our story in the corner office of BigCo, where Web Todoto, BigCo's Corp Dev. manager, is pitching his boss, I. G. Olfalot, BigCo's SVP of Corp Dev., on his latest recommendations for strategic acquisitions:

Web: We've got to act fast, sir. All of our competitors are out spending big bucks on strategic deals. We're getting left behind! Internet advertising is going to be $42 billion in a few years!! We need to position ourselves now!!

IG: I don't know web...seems like lots of these deals are way to rich...I mean $15billion for face book? Do they even make $100mm annually in revenue? I've heard $200mm can't even get you a deal anymore. And look what you get for $300mm these days....I don't know. Wht happened to the old build it vs. buy-it analysis?

Web: You can't just build users base - or a network effect. It's either there or it isn't. And, yes, we get good traffic on our sites - but there's no network effect...and we need one...yesterday!

IG: ok, ok - what do you have in mind.

Web: Sir, I'm just giddy over this one. I can't beleive it's still out there. You remember Digg? The social news site?

IG: Right. the one where the kid says he's worht $62mm, even though they make no money.

Web: Ancient history, sir. They're tearing things up these days. 11.5 mm uniques according to comscore. Huge network effect. Very passionate users.

IG: Go on....

Web: Well sir. They're amenable to an aquisition with a forward thinking partner like us. They can see we understand their goals and want to grow their business. Which is why they're open to selling to us for...get this...only $300mm.

IG: cough, cough....$300mm?? Seems rich. Well, if you think it's a good idea Web, we can probably sell it to the big man. Before we head up to his office though, let's just do a quick search to see what the buzz on these guys is....

Close up of IG's screen:

Just Sell Digg Already, Jay

IG: Ummmm, on second thought Web....I'm late for a tee time. Let's brief the big man some other time. In the menatime, keep digging - no pun intended - to see what else is out there deal wise.

Fade out...


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Comments (1)

Digg sucks, users mental age around 12, sites that front page are mostly dead from the traffic burst, same submitters getting front paged and stealing them from other submitters, and the quality of the sites and the discussion are pretty bad. Reddit seems to be doing better

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