SHARING AMERICA'S TECH NEWS FROM THE VALLEY TO THE ALLEY
by courtesy TechCrunch
So email management startup Xobni was acquired by Yahoo today, the company officially announced on its blog. Initial reports said the company was acquired for “upwards of $30 million” but TechCrunch has learned that total consideration for the deal will be about twice that amount, somewhere in the $60 million-plus range.
Founded in 2006, Xobni raised about $42 million over the years, as it tried to reinvent the way email was done. The company’s last round of funding came in February of last year, and investors over the years have included First Round Capital, Khosla Ventures, RRE Ventures, Baseline Ventures, RBC Venture Partners, Relay Ventures, Cisco, Atomico, as well as a number of angels.
A source with knowledge of the acquisition disputes the $30 million figure, saying total consideration is about double what had been reported. A price in the $60 million range (including earnouts and other considerations) isn’t a fantastic return for its investors, but at least the company wasn’t acquired for less than it had raised. While the company didn’t get to be as big as the team or investors might have hoped, they also didn’t get rocked in the transaction, as has been suggested.
We’re still hoping to talk to both Yahoo and Xobni about the deal and how the startup will fit into Yahoo’s products and culture. It’s likely that Yahoo will be able to incorporate some of its technology into its own mail products as a way to improve them.
We’ve also reached to Yahoo and Xobni about terms of the deal. Yahoo says that it’s not commenting on the financial terms, and a representative from Xobni hasn’t responded to our request yet.
Thank you, TiA