Startup Exit: Feedburner is rumored to be sold for $100 million in all cash deal
The originator of this story comes from Mashable and with the debacle at Engadget over the Apple delays and resulting stock dip, this is rumor until it is a Google press release or on the Feedburner site.
Since the rumors are pretty much confirmed that Google has bought Feedburner for $100 million in an all cash deal, it begs the question of how well Feedburner will integrate into the Google culture and treat Feedburner’s loyal customer base. With their track record, it is not just will they be a evil, but will they be a good partner?
In any event, Aaron over at Technosailor has written an open letter to Google and Feedburner begging them to be a good partner and not press their emerging empire building tendencies too fast in their quest to index every piece of information.
Since this is Startup Spark we look at this as a great startup with a great exit. Many technology companies these days find it hard and a pain in the butt to go public. The logical exit, especially with venture funding involved, is to be acquired by one of the “Big 4″ (Google, Yahoo, Microsoft, AOL).
As a strategist, my job is to find the best position to place a product or a company so that it will grow and be profitable. One of these options is to strategically align and combine solutions into a greater solution. With this acquisition, you can see Feedburner and its management team running a group that includes Blogger, Google Analytics and Google Reader to make a powerful blogging suite. Feedburner’s acquisition is especially important because of its add network. They have figured how to get ads place inside of blog entries, on blog sites and through feed readers. This could be a HUGE revenue boost for Google to leverage this channel with the leader in the space.
For those entrepreneur’s reading this I would take away three things:
- Build a great company and the exit option will find you
- If you have an acquirer make sure they are a partner and not just a buyer
- Evaluate the strategy and current offerings to ensure that it will integrate and increase the value and subsequent value of your exit
POSTED IN: Entrepreneurship, Online Business, Web 2.0
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