Wow, $200M revenue run rate = $7.5B valuation. That’s a smooth 37.5x revenue valuation. The issue I see is if they try to generate meaningful revenue then someone will launch a competing service and steal all their users.
Just look at the user numbers. 18.5M in 2013 to 23.1M today. That’s less than 5% a year user growth. That shows they’ve already saturated the market. Is the number of software engineers going to dramatically increase? Are they going to suddenly monetize users are a far higher rate to justify the valuation?
I wonder how many of the employees will bail, because they won’t want to work for MSFT.
microsoft is buying a brand.
github successfully killed sourceforge.
this is their enterprise play, hooks into visual studio wil be built, azure will work on it etc.
It’s not just how much money they will make. it’s their platform play.
Azure is considered to be the money spinner for MSFT going forward. People write code in Github -> You put in a service that compiles the code and manages the releases and you deploy it in Azure. One click from code to deployment. Many third-party software tries to do this now.
Totally agree. GitHub is a beautiful extension of LinkedIn. Where else can you find a more insightful resume for the most talented engineers?
I try to hate MS for the longest time, but now it seems to be positioned as a respectable underdog…
I agree GitHub is a great buy for Microsoft. I am just not sure about the price. Obviously Microsoft knows more about its own plans and the financials of github. Yes it has obvious synergy with LinkedIn, azure and its dev tool chains.
Here’s a comparison with a recent IPO star Docusign. Its market cap is 8.3B so not far from github’s 7.5B. Its FY17 rev is 519M and should be able to easily grow 30% to 674m in FY18. That’s over 3x of what github is expected to bring in.
In response to the pressure from above to make money, Messrs. Koum and [co-founder Brian] Acton proposed several ideas to bring in more revenue. One, known as “re-engagement messaging,” would let advertisers contact only users who had already been their customers. Last year, WhatsApp said it would charge companies for some future features that connect them with customers over the app.
None of the proposals were as lucrative as Facebook’s ad-based model. “Well, that doesn’t scale,” Ms. Sandberg told the WhatsApp executives of their proposals, according to a person familiar with the matter. Ms. Sandberg wanted the WhatsApp leadership to pursue advertising alongside other revenue models, another person familiar with her thinking said.
Strategic differences don’t imply they are piece of shit.
manch’s focus is $$$$$$ anyone who don’t go for $$$$$$ is a piece of shit.
So if you want to make $$$$$$, should listen to him.
Yes, you are correct to say this,