Adobe acquired an ad-optimization startup called DemDex yesterday.
Across the tech press landscape, Adobe and DemDex filled inboxes with news of the deal and even sent out a release to many of its customers.
One thing you won’t find in any of those announcements is how much Adobe paid.
Well, we just found out: $58 million, according to a reliable industry source.
The truth is, big public companies make aquistions like these and almost always decide not to disclose the price.
Probably there is no reason – other than that disclosing the price has very little upside and can only hurt.
In this case, maybe the team Adobe is replacing with the DemDex team will hate their new, richer colleagues and never be able to work with them. Maybe DemDex investors First Round Capital, Genacast Ventures, and Shasta Ventures don’t want their own investors to be reminded that they only got a $58 million exit from their $7.5 million investment. Maybe DemDex execs don’t want a thousand cold calls from Charles Schwab brokers.
Sure, $58 million is enough that Adobe, a public company, will have to eventually disclose the price in the middle of some labyrinthine SEC filing – but why make waves now?
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