Product Management :: Product Marketing

04 January, 2008

Plaxo for sale

From TechCruch:
The company has raised $28.3 million to date over four rounds, including $9 million last February. The company had over 15 million users as of September 2006, and their recent integration into Google Open Social has led to a further growth spike.
Growth figures to the left.

Private Equity Hub reports:
Social networking site Plaxo has received an unsolicited acquisition offer of around $200 million.

Jeff Nolan evaluates Plaxo on the same basis as Facebook's price (ie per user):
The FB transaction valued each of the company’s 59 million users at $254, which when applied to Plaxo’s reported 15 million users nets the $3.8 billion valuation. So what is interesting about Plaxo reportedly hoping to fetch $100 million is that this valuation implies each user is worth $6.66 (hmmm 666…), which when applied to Facebook suggests not a valuation of $15b but rather $400 million.

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