Mark Wolfram, General Manager of Venture Integration (!?) for Microsoft, told a group of VCs that no startup is too small for it to consider acquiring, apparently displaying its desire to keep up with Google's and Yahoo's appetites for startup veal. As CNET's own Beyond Binary reports, though, depending on how you read his comment, Wolfram's idea of a fair price may not endear him to too many startups.
"At end of day we are buying a company for (its) people and IP."...
Asked what is the smallest acquisition he'd consider, Wolfram insisted that there is no minimum revenue, provided its two prior conditions are met. Some of Microsoft's acquisitions have been companies with just a few people and no revenue. The company has also spent as much as $6 billion, with its recent acquisition of Aquantive, though $50 million and 50 to 100 employees tends to be the company's sweet spot, Wolfram said.
I read that to mean $50 million in revenue. But if it means what Valleywag interpreted it to mean - 50 to 100 people and a valuation of $50 million, it's no wonder the best startups don't necessarily fall into Microsoft's lap. If I have 100 people in my company I'd darn well better be doing more in revenue than would justify a paltry $50 million valuation.… Read more