| ▲ | nateb2022 3 hours ago | |
OpenRouter already takes in around $140M in yearly revenue. How would paying 5% of yearly revenue make any sense for an acquisition?? | ||
| ▲ | Dylan16807 3 hours ago | parent | next [-] | |
> How would paying 5% of yearly revenue make any sense for an acquisition?? 50x revenue is also a crazy number. I wonder what happens more, companies selling for ≤5% revenue or companies selling for ≥50x revenue. | ||
| ▲ | leros 2 hours ago | parent | prev [-] | |
10% would be more typical. Perhaps the math is that OpenRouter inside Stripe makes it twice as valuable. You often see acquisitions priced on the value of the company post-acquisition. | ||