OpenRouter already takes in around $140M in yearly revenue. How would paying 5% of yearly revenue make any sense for an acquisition??
reply> How would paying 5% of yearly revenue make any sense for an acquisition??
reply50x revenue is also a crazy number. I wonder what happens more, companies selling for ≤5% revenue or companies selling for ≥50x revenue.
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.
replyThe 7 billion figure is not just open router's current value. It's also including part of it's projected value in the future. So that 7 billion includes current value + value say 5-10 years out.
replyRemember when Google acquired YouTube for $1.6B in 2006? That amount seemed ridiculous at the time. Its now peanuts compared to YouTube's yearly revenue.
replyLet's just hope the pitch wasn't selling everybody's data for training
reply2006 called and wants their valuations back.
replyjust imagine that the money isn't real and you're there.
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