Did Google Overpay For Startup Widevine?

Larry Page and some suits

Dan Primack at Fortune has a pretty embarrassing report on Google’s M&A style at Fortune.

But, a source close the company in question is disputing Primack’s report.

Last December Google bought Widevine, a video technology company specializing in DRM technology. Terms of the deal weren’t disclosed at the time, but Primack just spoke with an investor in Widevine about the deal.

Here’s what the investor said:

“Google came in on December 1, offered to buy the company for $150 million and said the deal would have to close by year-end … We were thrilled, because management only was valuing the company at between $30 or $40 million at the time. I think Google got a great asset, but almost certainly could have gotten it for less. There were never any other offers, including from the company’s strategic investors.”

An interesting story, but a source initimately familiar with the deal says Primack’s report is wrong.

Our source reached out to us after we posted this story and said, “The number cited his is not accurate,” but wouldn’t provide a different number.

This source also says there were multiple bidders, and Google’s bid was in line with the market, but ultimately a little high. It was not $100 million above an internal valuation and to say so “paints Google with a brush they don’t deserve to be painted with,” says our source.

We asked Primack about his report on Twitter, and he sticks by his source.

For more tech news visit SAI.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.