27 April, 2010

Salesforce acquires Business Contact Directory Jigsaw For $142m

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Salesforce.com has agreed to acquire Jigsaw which provides crowd-sourced contact information for business. The deal is worth approximately $142 million in cash, plus a performance-based earn out of up to 10% of the purchase price, according to Techcrunch.

I derided Jigsaw when it first launched in April 2004 (see my blog post), as it allows users to buy other people's contact information, without their permission.

The model has changed - but I still dislike the whole concept:
  • Users are no longer paid cash to upload contacts. Instead they receive points that can be used to download contact other people's contact information (ie not real currency, but a virtual one).
  • It is now positioned as contact information cleanup tool
  • Users can now see if their personal information has been uploaded, and there is a process to have it removed, at least temporarily.
  • Revenue was rumored to be around $30 million per year at the end of 2009.
  • 1.2 million users with 800 corporate customers.
  • Database of 21 million contacts at nearly 4 million companies.
  • The company had raised $18 million in venture capital to date.

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