GOOG
💰 Google is paying almost three times more than Mandiant’s (former ticker: WHS) valuation from less than a year ago.
🤔 The acquisition price is 72 times Mandiant’s annual recurring revenue, a multiple similar to Palantir’s.
❓ The presenter questions why a company as large as Google couldn’t create something similar to Mandiant, which is less than 5 years old.
@bernardodegarcia:
“It may be a somewhat desperate move. Anyway, I’m surprised to see the amount of news and the progress that Google is making with its Google AI. As we said, it has Google AI, Google Gemini 2.0. This was launched today, Javenai 2.0, our most intelligent model, etc. This is March 25th. But it could be, it’s paying, of course. With Google deal, Google announced an agreement of this IPO wish to join Google Cloud. WHS was valued at $12 billion in a private funding last May, so less than a year ago. WHS was worth $12 billion. Google is paying almost three times more and has $500 million in annual recurring revenue. So, what is that? $500 million in annual recurring revenue. That makes sense, in quotes. It was trading at 24 times revenue, revenue, not profit. Okay, you say, ‘Well, it’s growing revenue very fast.’ Okay, but Google bought it, look, Google bought it at 72 times revenue, 72 times revenue. Google paid for WHS, which I didn’t stop to analyze, Palantir, we always talk about Palantir. Palantir is trading at 78 times. Google paid an approximate multiple for WHS that Palantir has, 72 times. How did I get that figure? $500, $12 billion, you divide it by 500, and you get the price, the price-sales multiple. And then, from 12 more or less, you multiply it by 3, and it’s 36, $3 billion as a gift. So, you take those 24 and multiply them by three, and that’s the multiple that Google has paid. But here it doesn’t tell you how fast it grows. It has to finance if it doesn’t have cash. Oh well. Well, you have WHS exclusive sec network tries to fire federal workers. Why does Google want to buy WHS? Team pin security, 23 Funding, founded in 2020. So, why can’t a company as big as Google create something similar to WHS, which is not even 5 years old, and you’re paying $32 billion for Allaf Rapaport? That last name is good. Okay, there we have it.”
Viewers can see the exact part of the YouTube video where @bernardodegarcia discusses the stock here:
View the video on YouTube.
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