It’s demo day for the existing Y Combinator class, so we’ll have a mostly early-stage focus at TechCrunch today. However there’s also a host of late- and super-late-stage news this morning that matters.
Let’s get to all of it prior to we start to talk accelerators, overheated pre-seed evaluations and so on.
There are three things to talk about. Initially, the possible $10 billion exit of Discord to Microsoft. Discord is a well-financed unicorn that has raised heaps of capital and reportedly sports rapidly broadening revenues. Our goal will be to veterinarian whether the cost in question makes any sense, or if it is too low.
Second: Genuine estate-tech company Compass has set an IPO cost variety we need to explore. Is its resulting assessment strong? Does it line up with its current financial performance!
It’s a lot. If we do not get through it all now, we’ll fall behind and feel silly later on. Let’s get to work!
Discord and Microsoft
Microsoft might be getting good at neighborhood, which is an odd thing to say about the business software and cloud computing giant. The company’s Xbox video gaming community has survived the test of time, Github is doing great under Microsoft’s auspices, and Minecraft appears unharmed by Redmond’s stewardship.
That implies developers, kids and gamers are all content to hang with Satya Nadella and business. Adding Discord to the mix might offer Microsoft even more tooling to enhance its existing neighborhoods, or perhaps connect them more carefully together. That’s all product news, which isn’t our remit. Let’s talk numbers.
The New York Times reported that Discord has “held offer talks with Microsoft for a deal that could top $10 billion.” That figure has been extensively reported, so we’ll use it for our work.
With a possible evaluation in hand, we require earnings numbers to figure out if the possible list price makes any sense. Happily, we have rather fresh numbers: The Wall Street Journal reported earlier this month that “generated $130 million in income [in 2020], up from nearly $45 million in 2019.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.