Peter Kafka

Recent Posts by Peter Kafka

Google’s Final Price Tag for Invite Media: $81 Million

Quick item of interest to ad-tech players: The final price tag for Google’s acquisition of Invite Media.

The search giant paid $81 million cash for the demand-side platform, sources familiar with the transaction tell me. That’s above the $70 million range I estimated last week, but it’s obviously trivial for Google (GOOG).

I’ve heard grousing from some people in the ad-technology industry who had hoped that Invite would fetch more, because the deal will likely set a cap for other DSP purchases, if there are any.

But while some of Invite’s rivals have hoovered up significant capital, investors put less than $5 million into the start-up during its three-year lifespan. So that’s a very nice return for people like First Round Capital and Comcast’s (CMCSA) venture arm.

And it’s a very nice parable for start-ups about timing: Last summer, Invite was looking at an offer from Omniture (OMTR) that valued the company at less than $20 million.

No comment from Google.


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik